Gandhiadg, forget all that textbook crap about oscillators being overbought and oversold. Thats the first thing every new trader learns and the last trading method you want to be applying. Now the RSI can be used to spot divergences for short term trading. The MACD can be used as an overbought/oversold indicator for a longer timeframe such as weekly and monthly.
Price moves due to an imbalance in demand vs supply. If there is more demand, price will lift until there is a balance between bulls and bears. It will then move sideways and chop around. If there is more supply, price will decline until it reaches an area of balance. Imbalance vs balance. Trading off oscillators for overbought/oversold signals is a newbie tactic and a 100% sure way to lose.
Understand why price moves and why the market you are watching reverses at certain points. If you are able to understand market concept and what levels the professional traders are watching, you will be 90% ahead of
the crowd. Good luck.