Reversal Indicators

🔄 Top and Bottom Reversals

Reversal signals help identify potential turning points in the market.

The Reversal indicators in EZ Trend can help indicate max opportunities for reversals, In stronger uptrend / downtrend conditions, they can also warn of price stalls (losing momentum), its best to use these in combination with other indicators to verify signals

⚖️ Settings:

  • Top Reversals: Toggle to enable/disable top reversal signals

  • Bottom Reversals: Toggle to enable/disable bottom reversal signals

  • Tops/Bottoms Reversals Set 2: Alternative detection method with less noise


🧠 How to Interpret:

  • "T" Symbol: Appears above candles at potential market tops

  • "B" Symbol: Appears below candles at potential market bottoms


🛠️ Practical Usage:

  • Use as potential exit signals for existing positions

  • Can indicate countertrend entry opportunities

  • For increased reliability, wait for confirmation from EZ Trend line

  • When both Set 1 and Set 2 signals align, reversal probability increases

  • Consider reducing position size when trading against the main trend


🕯️ Exhaustion Candles

Exhaustion signals identify potential trend exhaustion points after extended moves.

⚙️ Settings:

  • Exhaustion High Candles: Toggle to enable/disable exhaustion top signals

  • Exhaustion Low Candles: Toggle to enable/disable exhaustion bottom signals


🧠 How to Interpret:

  • "H" Symbol: Appears at potential exhaustion points after uptrends

  • "L" Symbol: Appears at potential exhaustion points after downtrends


🛠️ Practical Usage:

  • Use as warning signs for potential trend reversals

  • Can serve as exit signals for trend-following positions

  • Most reliable when they appear after extended trends

  • Consider partial profit-taking when exhaustion signals appear

  • Combining with reversal signals provides stronger confirmation

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