Magic Spread

24. Mai 2021

• Bullish above 0
  
• Bearish below 0
  
• Buy signal above 100
  
• Sell signal below 100
  

The higher the number and the volume the stronger the signal is.
In extreme market behavior, counter trend signal are early sign of weakness that can take more or less time before reversing the trend.
Signal in the direction of the trend are more efficient.
Of course it work better as confluence, and should be used with other TA. Find support and resistance levels, and use this as confirmation.

e.g. :

• A buy signal at support in an uptrend are very powerful.
  
• A buy signal at support in large uptrend but a in a strong pullback can lead a significant bounce and forthcoming reversal but can take few LL before totally reversing.
  
• A buy signal at resistance in an uptrend should mean imminent break-out but could be follow by a retrace / retest.
  

10. Dez. 2021

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