The problem with the RSI is that in strongly trending markets an initial buy signal (RSI crossing back below an OB level) might be at ~ the same price as a subsequent sell signal using a more sensitive OB/OS indicator such as the Slow Stochastic. This is the case when the RSI blow through the OB level and goes higher, stalls, and then drifts lower as the Slow Stochastic heads all the way to OS. And of course, there is always the wiggle factor, or noise, to contend with. Say your RSI OB level is 70, and as the price approaches that and crosses, it dances back and forth over the line a number of times before heading higher or lower. And then there is the issue when it is close, but never quite gets there. At that point, recognizing that the market's trading character is constantly evolving, do you take the trade, if say some other indication says that volatility is reduced, or do you only trade when the hard technical criteria as defined by your backtest are met?
