If this approach works for you: brilliant! I wish you all the best using it...
However, my thoughts about overbought and oversold:
Rising RSI (or Stoch, for that matter) means rising momentum - so 80 (and above) means extremely strong momentum; to sell there is madness (except in ranges, sometimes...)
20 and below: opposite rules apply....
A more logical approach:
RSI
< 50: look for sell-entries
> 50: look for buy-entries
Of course this is a simplification.
(as you can see from the screenshot you have to imagine 50 more as an area than a line...)
[Could you have made money today using this oversimplistic principle? Yes, you could....
That could mean: your coloured areas aren't entry-areas but exit-areas...]
