Kym has spent years studying different indicators and analysing their effectiveness when trading. There are quite a few indicators that are used to try and identify overbought or oversold levels in the markets, but they were never meant to do this. Kym looked at a method that could identify levels from a statistical basis and adjusted this to highlight the most significant signals. If you have studied price action you will notice that it often regresses to its mean. This indicator and trading method will help you identify high probability set ups and how to trade them.
The indicator is very easy to install and use. Kym has added far more content in this update giving traders a better understanding of the markets and helping them to apply the signals.
It works across a number of time frames although Kym’s preference is on the 30 or 60 minute time frame thus it is really a day traders tool. It can be used on the 240 minute and daily timeframe although there are far fewer signals as you go up the time frames.
In simple terms it identifies reversion points. In slightly more technical terms, the markets generally move in an oscillating trend or waves within a trend. The forex markets in particular sees many of these waves on an intraday basis driven by various factors.
The 60 minute chart to the left 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 our experience we have found the 30 and 60 minute time frames the most profitable from a signal perspective, although the 5 minute signals both provide good entry signals but just as importantly exit signals.