Overbought And Oversold Signals
Beware of attaching too much significance to oscillator overbought and oversold signals. Oscillators will give repeated or sustained overbought (sell) signals in up trends and repeated or sustained oversold (buy) signals in down trends. While oscillator signals can be useful in non-trending markets, unfortunately there is no way to know when a market will switch from trending to non-trending mode.
–Mark Etzkorn, Trading with Oscillators (1998, John Wiley & Sons, New York).