Metatrader Indicator PowerRVI combines the power of RVI and Bollinger
Bands indicators with confirmation of Tick Volumes.
Usage:
1) New trend:
The indicator predicts a possible trend change, when the blue line of oscillator crosses the red median.
2) Divergence:
An indication that an end to the current trend may be near occurs when the indicator diverges from the security.
A bullish divergence occurs when the blue line is making new highs while prices fail to reach new highs.
A bearish divergence occurs when the blue line is making new lows while prices fail to reach new lows.
Both of these divergences are most significant when they occur at relatively overbought/oversold zones.
3) Overbought and Oversold zones:
We are in Overbought zone when the blue line is above upper gold band.
We are in Oversold zone when the blue line is below lower gold band.
Sell in Overbought zone. Buy in Oversold zone.
|
