How to Spot Reversals? + Trading Levels 8.08.2019

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Lets take a look at extreme oversold situation in the mini NASDAQ,the below is from my colleague Dave Register of ExitPoints.com:
The swing turning points based on pattern, price support/resistance, and time-cycle ratios are especially important when the market is overbought or oversold. I use two indicators for overbought or oversold. First if the commodity-channel-index(5) is above 100 it indicates overbought.If below -100 it indicates oversold. Second the rsi(2) is averaged over the most recently completed two days. If above 85 it indicates overbought, below 15 indicates oversold. Both of these indicators must agree for the market to be overbought or oversold. i.e. a reversal signal on the swing trade time frame of one to two weeks. Each evening my software scans the futures and forex markets for overbought and oversold conditions. Beware that if the rsi(2) indicator averaged over the recently completed two days is above 99 or below 1. The momentum is so powerful it should be considered a continuation signal.
If you like to try the “reversal” indicators, including the DIAMOND one shown below , sign up here for 3 weeks free trial.
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Good Trading

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Futures Trading Levels

08-08-2019

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Economic Reports, source: 

bettertrader.co

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