Bollinger Bands and RSI overbought and oversold price detection

6 Answer


BB and RSI are trading tools that detect not only the overbought and oversold conditions of the market but also the trend, which makes them powerful. Nonetheless, they still need other indicators and strategies for better confirmation to increase their percentage of winning.As for the bot question, I also read the post of other users, paying for the bot is not wise to me. I only know of the MT4 trading platform capable of sending such signal/confirmation to Emails and texts through EA for free. If you need an exchange with such a feature for free, it is good to inquire directly from the trusted ones you know.RSI will work perfectly for short-term trading too, all the trader needs to do is to use the lower charts for the analysis.


I also consider the Bollinger Band and RSI as very useful indicators. 👍👍

Comment (2)

crzy2022-08-25 21:06

They are useful on their own purpose so if you area already familiar with those indicators, that can be a big help. Those indicators are only telling the sign of overbought and oversold, to know the current trend better to use other indicators which you can also confirm by using multiple indicators. BOT in trading can be good as well, but I don’t think there’s a bot for indicators, better to understand this manually.

goaldigger2022-08-25 21:48

Every indicators serve their purpose, if you see one indicator not fit to the chart then use the other option. RSI are more popular though Bollinger bands can also work the same, some indicators are just being used for confirmation and with that said, you can have more option to tell if there’s an overbought or oversold, the next thing to do is to look for a buying signal. Trading requires a lot of work and patience, you should also need to be wise on choosing the right indicators.


If you want to know how to identify overbought and over sold, you can do that using RSI. RSI and Bollinger bands are good combination of indicators, use one for the other and you can understand what you are asking. RSI personally is to know overbought and oversold. Study the candle sticks pattern and formation too, it is useful. If you study the candles on longtime formation, you can quite know when Bollinger bands is on overbought or oversold levels.

Comment (3)

samcrypto2022-08-25 23:09

There’s no need to choose since both works for the same purpose, if one indicator can’t tell the exact picture, then use the other and sometimes you can also combine them to get a clearer signal. Indicators are the key to succeed in trading, without that you can’t analyze that much. Learning this can be a big factor for your trading journey, better not to skip this and learn more indicators as much as possible.

GreatArkansas2022-08-25 23:46

Nope, I believe using them both is on different purposes too, RSI is more on or focus on the momentum indicator while the Bollinger band is something combination of volatility indicator/moving average of price, and at the same time you can also use it as for overbought or oversold indicator.Overall, you can use them together or either of the two. For me, these indicators is just add ons or an additional tool to help you to analyze the chart, so it's up to you.

Johnyz2022-08-25 13:09

RSI can work better to know the overbought and oversold, though of course to have a clearer view it is still advisable to use other indicators. Bollinger bands can also tell this, it can measure the market volatility and of course that overbought and oversold signal, moving average can still be a big factor for this. Once you are able to spot the signal for overbought and oversold, this can be a big help for your decision making, better to take advantage the market once you spot that signal.


Overbought and oversold can not be identified by Bollinger bands.Bollinger bands are good to use but they can not help you to identify what trend will be a next one? Up or down, you can not get it from Bollinger bands.You will surprise if you turn on and turn off the Bollinger bands and see that price will move up and down to previous resistance or support. Bands will be around that.

Comment (1)

Scripture2022-08-25 13:52

Based on what I know, this is their purpose to know the volatility level of the market and yes this indicator can identify if the price is already oversold or overbought. This is just one indicator but if you uses other indicator like RSI, you can confirm that your firs analysis is correct. Now, if you want to know the next trading signal or the trend, then you can use the other indicator, this how good trading is because you can use many indicators to confirm your analysis and to complement the other indicator. RSI and Bollinger are almost the same though RSI are the common indicator to spot the oversold and overbought.

Tytanowy Janusz

Not sure about Tradingview free (I think it has this option too), but for sure Tradingview premium and pro has this option among being the most usefull charting website. I even found a youtube tutorial for you:This tutorial is for RSI but you can set allerts also for MACD, VOL, EMA, Bollinger Bands. Simply every indicator that is available on tradingview.


just what you need to do when there is non.been using RSI for long term chart to make sure that its really overbought/sold in bear market. not sure also if there is a notification option for traders but most of the time i just randomly check daily and weekly chart for it. its laborious task. i can say, were already over bought. waiting for overbought might take a long while.

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