So interesting point I noticed today that might be worth keeping in mind for future reference.
Often we think about an indicator value crossing some limit to mean something, for example, in SSD if it crosses over the overbought line then it is overbought. Likewise if it crosses under the oversold line then it is oversold… so what do we define the space in the middle???
Are the indicators really that exact? No, they are not.
If all we are certain of is that above the overbought line we are overbought, then doesn’t that mean anything below the overbought line could be oversold?
Using this point, I was able to improve my trend strategy. For example, I’m looking for signals to buy. Instead of insisting that the SSD indicator had to be showing oversold to confirm the signal – I changed it to insist that it simply was NOT overbought. After all, I was just looking for a possible confirmation.