90 % agree. Overbought/sold regions got invented to rek retailers. Price action and volume are still king. Some setups with bullish indicators are often bearish(e.g. bearflags on lower time frames). Also understanding how the indicator is calculated is important
Most aren't even aware that an oscillator staying overbought/oversold is actually indicative of strength in the current trend. The buy/sell signal only triggers once the indicator returns to the normal from overbought/oversold levels.
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RSI divergence plays a nice confluence when identifying if something is reacting to s/r
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In the early days I actually saw a fair amount of success taking trades this way... buying in the 70's and selling when the 70 was broke to the downside.
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Had to learn this the hard way by watching the charts for days to understand how trending price reacts to these overbought or sold conditions
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Using oscillators with trend is an effective strategy as you just buy dips and sell rallies.
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