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The RSI + Stochastic Combo That Filters False Reversals Without Overcomplication

  • The goal is to catch moments when both RSI and Stochastic indicators indicate that momentum is overstretched and price might snap back.
  • The key lies in the sequencing of indicators, not just their overlap.
  • By looking for agreement around exhaustion and a subsequent bounce, traders can build light reversal signals.
  • The focus is on simplicity, using filters to cancel noise rather than to define the entire signal.

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