Your Big Fact Lying Indicator: There is no such thing as Overbought or Oversold

We are surrounded by big fat lying liars. They are everywhere and you cannot avoid them. Statically, given any 10 minute conservation, 60% of people will tell at least one lie.

People will even will lie to themselves or allow themselves to be lied to. I see this truth to be consistent amongst currency traders.

They fill their charts with the greatest of liars and then render a horrible decision based on such crappy misinformation.

If you have any indicator on your chart that tells you price is either overbought or oversold then take it with a grain of salt. It's a big fat ugly lie that roams Walmart with fat rolls hanging out of its pants.

Such a disgusting and shockingly common indicator is the Stochastic Oscillator. It is a deceitful and evil bastard villian to us Price Action Heroes out there. Most people never take the time to understand what an indicator actually does or how it's calculated. Rather they look to an indicator to lead them directly into a trade, as opposed to using it as a tool to help understand the action price is taking.

The lying Stochastic Oscillator, along with any other indicator equally full of nonsense, can only report past data. It cannot predict the outcome in the future. And if you are using it as your magic crystal ball, then do not be surprised when you commonly find yourself on the wrong side of a trade.

The other day, I read a comment from a trader that a particular currency pair was grossly overbought. Oh really? How can that possibly be? Did some full of shit indicator tell you that?

If it's so grossly oversold then why is it continuing to fall? Surely one would be absolutely stupid to sell a pair that is oversold for fear that they are entering such an obvious losing trade.

So why does price continue to rise when it's seemingly Overbought or continue to fall when it's supposedly Oversold?

Imagine how much money you are leaving on the table because you hesitated getting into a trade because some big fat liar lied his lying lies to you. Or if you're already in a trade, how willing were you to close our because of the same deceitful drivel?

And don't think I'm not looking at you Relative Strength Index! You're a lie and a cheat and have been screwing good traders out of their money since the 50's!

When you ditch the indicators and follow price action, you'll soon be able to see right through the giant fibs they tell. It's far easier than you think and give it credit for.