I would like to present to you an educational piece regarding a particular trading methodology. This involves using the indicator as your primary utility. This trading strategy is only as good as your money management strategies are. Everyone employees different money management strategies, so how you approach this is up to you. This can be used for any coin/stock, so long as you set stop losses that you are comfortable with.
This trading style requires you to be fairly liquid, and it's akin to a fast pace version of swing trading, depending on the time frame. This trading style works best on the smaller time frames (5m, 15m, 30m, etc.), and it's advised you set proper stop losses every time.
The trading strategy is quite self-explanatory- when the enters the oversold territory, you get ready to open a long. When it enters overbought territory, you exit the trade or open a short. The reason this trading style may be seen as favorable is because it allows you to circumvent extreme , therefore minimizing extreme downside. Remember, the best traders are okay with losing trades, so long as they win on average.
By employing this trading strategy, you are less concerned with the current price of the coin, or where it may be headed over the course of the next few days/weeks/months. What you are ultimately interested in is riding a 1-3% rally up, then promptly exiting. The beauty of this trading strategy is that you can find a multitude of coins that will go through this process, and if you get a good rhythm going, you can constantly find trades to set up and win.
You must accept the fact that you won't win every trade you enter, and you must accept that you WILL lose money, but as long as you have a consistent strategy to follow that works, you will succeed. Just be aware that this particular strategy requires a level of attention similar to that of scalping. You can of course do this on larger time frames, but you will obviously be trading far less waves. In the example I've charted, for example, if someone traded all those intervals successfully, they'd have earned 45% over 9 days, which is obviously a great gain. No one is able to actually trade that accurately, but it's clear that the potential is there. Remember, successful trading is just as much a complementary positive psychology as it is anything else. If you get yourself into a winner's mindset, you will begin to win far more.