Momentum Indicator - Overbought/Oversold Levels approach

Momentum is used as an overbought/oversold indicator, to identify potential overbought and oversold levels based on previous indicator readings; The previous high or low of the momentum indicator is used to determine the overbought and oversold levels. Readings above the overbought level mean the currency pair is overbought and a price correction is pending. While readings below the oversold level the currency is oversold and a price rally is pending.