overbought / oversold zone

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what is your method of identifying overbought / oversold zone?

or

your method of identifying reversal?

 
zone? what do u mean?
 
gordon:
zone? what do u mean?

I mean when the price is at the overbought / oversold zone.


I understand using stochastic, demarker, rsi, cci, william % can give these signals.


what im looking for is others' methods of identifying.

 
Sorry, not familiar with that.
 

The extent of the overbought zone can vary a great deal, even withing the same pair

Just cos its 'overbought', dont mean it cant go higher..

So... I find it more useful to look for the end of the zone by looking at the potential reversal signal of the CCI, when over a certain level, (for the pair & timeframe) breaking back through the MA of the CCI

Alternatively, the RSI breaking back through the MA of the RSI

See this page of free indis http://www.selectfx.net/free_stuff_ind.htm

particularly SFX_MA_On_RSI. also iTrend hitting a certain level for pair & timeframe is also good at signaling potential reversal

Good Luck

-BB-

 
BarrowBoy:

The extent of the overbought zone can vary a great deal, even withing the same pair

Just cos its 'overbought', dont mean it cant go higher..

So... I find it more useful to look for the end of the zone by looking at the potential reversal signal of the CCI, when over a certain level, (for the pair & timeframe) breaking back through the MA of the CCI

Alternatively, the RSI breaking back through the MA of the RSI

See this page of free indis http://www.selectfx.net/free_stuff_ind.htm

particularly SFX_MA_On_RSI. also iTrend hitting a certain level for pair & timeframe is also good at signaling potential reversal

Good Luck

-BB-

Thanks

How do I read the iTrend indicator?

What do u think of candlestick patterns?

 

How do I read the iTrend indicator?

I prefer to use it on M5, H1 and D1 timeframes

Look for reversal levels repeated over time for the pair and timeframe, e.g. +/- 2 +/- 5

Drag the standard Volume indicator over the iTrend and see where activity spikes coincide with a break or touch of one of the reversal levels, to help confirm a likely change of direction

Combine iTrend as above with a smoothed MA 5 period on the USDJPY M5 chart for the US session and see what you think ;)


What do u think of candlestick patterns?

Not as universally useful as many would like to think - especially when the daily ATR is so low on all pairs compared to say Q3 2008...

This EA https://www.mql5.com/en/code/8714 has pattern detecting in it but its not amazingly effective...

The higher the timeframe the more valid the pattern, but who can wait for the W1 on GBPJPY, unless your are position trading...?

Good Luck

-BB-

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