■ RCI's overbought/oversold is judged in two levels by MT4 indicator 【R1MAUL】
RCI Supported by Moving Averages with a “Two-Stage Confirmation” – Arrow Indicator【R1MAUL】
If you set the overbought line (the oversold line) for RCI to, for example, +80 (−80) and you were planning to sell (buy) when RCI reaches this line and reverses, but it reverses without reaching +80 (−80) and you miss the opportunity, have you experienced that?
To avoid such a situation, in 【R1MAUL】there is a two-stage confirmation for overbought/oversoldused in some indicators.
What is the two-stage confirmation for overbought/oversold?
Overbought confirmation
When the price breaks above the first overbought line and then breaks above the second overbought line, the signal lights up again only when it breaks below the second overbought line. After that, if it breaks below the first overbought line, the signal does not light.
If the price breaks above the first overbought line but does not break above the second, then when it breaks below the first line again, the signal lights up.
Oversold confirmation
When the price breaks below the first oversold line and then breaks below the second oversold line, the signal lights up only when it breaks above the second oversold line. After that, if it breaks above the first oversold line, the signal does not light.
If the price breaks below the first oversold line but does not break below the second, then when it breaks above the first line again, the signal lights up.
Example of RCI two-stage confirmation (overbought/oversold)
This 【R1MAUL】 includes the two-stage confirmation for RCI overbought/oversold and also offers an indicator that uses moving averages as a filter, expanding the chart configuration options even further.
(Overbought/oversold) two-stage confirmation + moving average filter chart example
RCI Supported by Moving Averages with a “Two-Stage Confirmation” – Arrow Indicator【R1MAUL】
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