Its weird, those oversold/overbought indicators almost always seem to work? Is it just because people follow them - or is there actually something significant behind them?
I mean, it didnt scream overbought on the way up to 260, but it did "predict" a few of the [very]-short term spikes down... as well as up.
There's a lot of different ways to read each one of the indicators, and they all pretty much measure different things in different ways. They are slightly lagging indicators, so they can change their mind at the last moment, as with moving average lines. And they have the potential to stay oversold/overbought for a long time, or become even more oversold/overbought without much difficulty. Or they can quickly go from oversold to overbought without much difference in the price.
Yet there's a lot of things to look out for in these indicators, such as for example Hidden Divergences on the Fisher indicator:
www.babypips.com/school/hidden-divergence.html