Identifying potential turning points simply
Well it’s finally here..
Kym has been talking about his overbought/oversold signal for ages. It took a while to get it programmed for use with MT4 platforms in addition to the eSignal version that we use, but we are pleased to say that it is ready.
So what does it do? In simple terms it identifies the points in the market where the market may be stretched and due a retracement. In slightly more technical terms, the markets generally move in an oscillating trend or waves within a trend. The forex markets in particular see many of these waves on an intraday basis driven by various factors. The 60 minute chart below shows the euro between the 6th July to the 20th July. You can clearly see the oscillations on the chart plus I have highlighted with arrows where the Inflection Point Indicator identified potential turning points within the market.
The indicator can be used on all time frames to identify short term or more long term potential turning points in the market. From experience most of the traders that have been in the test group have found the hourly time frame the most profitable from a signal perspective, although the 5 minute signals both provide good entry signals but just as importantly exit signals.
It is not intended to be used completely on its own, the best results are shown where we have confluence with other simple technical analysis, such as horizontal support and resistance, moving averages and pivot levels. The good news is it very simple to use and runs on an indicator window on any MT4 platform or sub chart on eSignal.
That said we did not want to just give you an indicator and leave you to it, Kym has recorded some videos to ensure that understand how it works and how to use it. Within the videos he shows you how you can avoid entering a trade too early, how to set up your stops and what to look for in terms of targets, plus runs through the different time frames and how you can bring them together.
Don’t just listen to us
It is all well and good coming up with an indicator, but it has to be usable to anyone that uses it. With that in mind we shared the indicator along with a short introductory video with a small group of traders that trade in our live trading room a few months ago for their input. The feedback from the members that have been testing it and using it on a daily basis really says it all, here is just one for a start….
I’ve been using Kym’s over bought and over sold principles and indicator for a few months now. After some initial high level advice from Kym as to how to apply the indicator to my trading, I started using the overbought and over sold principles pretty much straight away.
Since then, I’ve integrated the indicator into my trading and now, so much so, it’s underpinning pretty much every trade I enter and indeed exit. I’ve found the reason I enter a trade to be far more confirmed and importantly it’s helped me work towards entering a particular trade with a close to optimum entry and price point whilst further enhancing stop placement. Also and importantly, it’s principles have enabled me to hold my positions for longer by seeing when price is truly over bought or oversold and conversely, take profit when price is really turning against my position.
I like to apply the principles and the indicator across all time frames and I’ve found it’s really powerful even down to the 2 minute time frame; it helps me shore up much of my decision making and it can fine-tune my entry and exit of a trade far more than I did prior to using it. I apply the principles to the higher time frames, such as the 60 minute, and this is where I can manage to lock-in more points than I have previously.
Knowing when price is exhausted in a particular direction in a consistent fashion has really enhanced my trading. Coupled with the use of the pivots in my daily trading, the overbought and over sold principles and it’s indicator really shine; I’ve found now, that any trade I take is never executed without referring to this.
It’s consistency really marks it out; Kym’s over bought and over sold principles and indicators’ highlight is it’s solid consistency and it really has helped confirm pretty much every trade I’ve taken since I started using it. I couldn’t imagine taking a trade now, given how much weight placed on pivots or hard support and resistance, without the confirmation from Kym’s indicator – it’s reliability is key and how much I rely on it daily, is so much part of my trading pattern now. I simply could not trade without it!
So what is the deal?
You can receive the indicator almost straight away. On purchasing it you will need to just send us either an eSignal user name or an MT4 account number (note it can be just a demo account for the latter, you do not need to fund an account). We will then send you the indicator and directions on how to load it onto your charts.
The cost of the indicator which includes a single licence, the training videos plus an invitation to a webinar to answer your questions on Thursday 4th is just £297 plus VAT and postage
You can listen to Kym’s introduction here
Some more tester’s comments
I’ve been testing EZT1 overbought/oversold indicator and found it so useful that it has been an integral part of my every day trading. I occasionally use it for entry and targets, but I found it even more useful for confirming an entry from other setups like pivot trades and sometimes when price is overbought or oversold I consider taking some or all of the position off and found that is has improved my performance. It’s easy to setup and use. I would highly recommend it as a standard tool for any strategy. I mainly focus on the 1 hour time frame signals but the 5min can be useful as well for short term extremes or longer time frames for swing trading.
I have been using the setup for quite a while now. It is a simple setup, which adds a significant amount of confidence in my countertrend setups. Having said that it not only allows me to identify entries for my trades, but it also gives me indication to exit other, trend based setups, or possibly to have the confidence to keep holding on to them. The addition of the oversold / overbought dedicated signal, gives a nice colour based visual signal of the setup. Altogether, it is undoubtedly another great trading setups released by Ezeetrader. – EE