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Magneto RZ defines price reversion zones. The built-in algorithm allows it to efficiently find levels acting as price magnets. The percentage of used levels is high enough – about 90% or more depending on the analyzed pair and market conditions.
What Is Magneto RZ?
The chart is limited by red (top) and blue (bottom) zones reminding traders of a traded pair's overbought or oversold state. Thus, when the price approaches the red zone, selling is the most appropriate action, while buy positions are preferable when the blue zone is approached.
Main displayed levels are horizontal lines with X Days text label. Green lines stand for complete levels that have reached their target when touching the price. Orange lines are incomplete levels.
Reversion zone is formed all current day and can change its value several times. Thus, I recommend that you use complete previous days' levels as a target instead of the current day's one. However, trades can be performed with new levels in case volatility is decreasing during the day.
Recommended pairs: EURUSD, GBPUSD.
- Number of analyzed days.
- The number of candles after the signal one that is not accepted for calculating the crossing of the level by the price.
- The number of candles before the signal one that is not accepted for calculating the level.
- Target definition accuracy in points (the distance between the level and the price, at which the crossing is considered to occur).
- Number of candles for calculating the reversion level.
- Incomplete level color.
- Complete level color.
- Line width.
- Indicate the number of days passed from the signal's occurrence up to its completion.
- Text color.
- Enable overbought/oversold zones.
- Number of candles for calculating overbought/oversold zones.
- Correction of overbought/oversold zones in points.
- Overbought zone color.
- Oversold zone color.