Reversal Indicators

πŸ”„ 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

βš–οΈ 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


πŸ› οΈ 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


πŸ•―οΈ Exhaustion Candles

Exhaustion signals identify potential trend exhaustion points after extended moves.

βš™οΈ 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


πŸ› οΈ 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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