Indicator to identify tops and bottoms?

Hello
I want to ask about over-under prediction method
What indicator do you usually catch tops and bottoms with?
Can you share it?
Thank

Watching the price, thousands of hours watching the monitor, reading all the channels in the forum, until you feel the movement of the price like the movement of a soup spoon going to the mouth. You are the indicator!

Zigzag indicator but it's repainting so not much of a use to you.
From the question you are a newbie.
If so, learn to don't rely on indicators that are always lugging price

MACD, RSI, STOCHASTICS, BB BAND those are a few I can think off the top. Pretty much any oscillator, well oscillates between the price lows and highs

You can never tell if a top is a top and a bottom a bottom until it has been established, as in a low will be established when you have a higher low, and as always vice versa.

Just follow the price. remove the indicator

various head and shoulders, quasimod and 5-0 pattern may give you stablished tops/ bottoms

The 5-0 pattern? What is the 5-0 pattern?

please check here

https://harmonictrader.com/harmonic-patterns/5-0/

You can alter the settings of any indicator to use it to move with the markets price cycles - some of these price cycles will be poor, but some of them will be brilliant - I've used this method for years to amazing success

The key is to use it in context to identify turns in trends - If you use them all the time, you'll have a high loss rate, but if you use them at the right time, you'll win

Here's WEEKLY chart of a UK stock, the RSI is set to 13 and for this I want to see/be alerted when RSI dips under 25%

The CONTEXT here is that in BEAR markets the RSI will find support around the 25% level followed by a decent bounce that you can then devise a trading method from to the long side - we are NOT trading the RSI at x%, we're USING IT to establish an expectation of what the market ideally should do next, then we wait (most traders can't do this simple thing) for price to confirm, then we trade



You can then devise strategies for RSI at various other % levels for bull trends etc

This one shows the 2RSI in a BEAR TREND - the x = no trade taken as the SMA's bullish and the - = trade taken at the LOW of the set-up bar



Don't let people tell you, you can't trade highs and lows because you can - I've been doing it for 15 years now

On 10th Jan I would not have taken those trades because I prefer a notable rally up into the SMA's then the breakdown, on the 10th that didn't happen - so even though the RSI >75% the price action req'd beforehand was not present, so nah trade

I knew I had this one saved somewhere - the above posts refer to harmonic set-ups - you can used an Indicator for that too! This one is another UK stock setting up for a poss BAT formation (Double bottom)



Got a beautiful TOP in this one (>75%)



Notice - that the FORMATION is present then confirmed by the Indicator, then you take the trade - not just randomly buying everytime the indicator goes below or above a certain level and most important, our entry and stop is on the bar of the set-up = ALL these trades are multiple R value profits not 1:1 RR some are 1:10+ R:R

The RSI has been around for decades - This ain't new

Up 1 or 2 timeframes from current and rsi length 21
Wait for trendline break to enter

Stochastic Divergence on H4 chart or..,
lower time frame depending where you trade.., can give a clue

...or an exercise to speed up a solution to the problem..,
choose a volatile pair and watch it from one hour before NYO till LC on M1(!) chart

HELLO
don't get me wrong, you are a scientist.
high and low is where there is no demand. we only know that when the trading day ends.
rsi and other indicators will not change that.
those who trade are speculating into the future.

Hi - I view the markets from an engineering/scientific point of view but i'm not a trained engineer or scientist - that's just how i view things

I'm not quite sure what you mean

Trading IS speculating, its based off probabilities - if I can guess right 70% of the time and make a certain £/% return, then I can make money from the markets

I've developed ways using Indicators to predict a certain % of turns - Although the Indicators are based at the end of the bar, when they reach certain % levels in certain market conditions, there's a very high probability of the market and by the market i mean PRICE action to do a certain thing, of which you can profit from

ALL Indicators are built off PAST price action - so they LAG price action, BUT, you can construct any indicator to move with the market - markets aren't random, they do things that can be patterned and with that a trader can then an Indicator to exploit for profit

I've done it successfully for 15 years

The examples I've provided show how I use to catch the HIGH or the LOW BAR - Like I said the market (price action) HAS to be in a position to reverse and you can read the market to achieve that - if you randomly apply this method you WILL LOSE MONEY, if you apply the method when price is at key REVERSAL points you will make money and at multiple R:R returns

Take the Compression WEDGE short example - You IDENTIFY the wedge, the EXPECTED outcome for price from that wedge was for it to DECLINE/FALL - We are observing and watching daily as the wedge forms, once point 2 happens, we are looking for point 3 which is HIGHER in price than point 2 ALONG with a 2RSI reading >75%, that happens at the close of the high bar at point 3 - so the expectation is a high probability reversal in price, it might NOT happen, but if it does, the LOW of the point 3 high bar will be exceeded and that is our entry point, the stop would go 1 penny above the high of point 3 because if point 3 is the high, price ain't exceeding that point and because of the type of market pattern, the target is the swing low of the start of the wedge - and if we are right, the 2RSI WILL turn DOWN from the 75% zone and follow price action to confirm

ALL Indicators follow the market price CYCLES, you just have to learn to READ them properly to then use them properly

Which is all sensible, logical and professional - We're only entering into a position if the market MOVES the way we expect and only if the market conditions are correct

Like I said this stuff has been out there in trader land for DECADES

Look at the works of Walter Bressert and Robert Miner as to how they use Indicators

Dick Diamond used Indicators but in a more of a follow on to the expectation, but still valid and I have a method that is very similar to his follow through

Grab a cuppa / coffee and think about this:

 

1. We have a DAILY time-frame market that has a 2RSI reading of <25%
2. Price has also pulled back into a support area - this could be a moving average, retracement level, Elliott wave count etc etc
3. The expectation is a price bounce/reversal of some degree - we don't know the degree - but we know that based off 100,000's of observations when price and 2RSI are at key points, reversals happen
4. The reversal may be a little pop higher on the DAILY bar time-frame or it could be the start of a decent to mega reversal - we don't know
5. But we know that if a reversal/bounce happens, then, it WILL also create trading opportunities on lower time-frames
6. So we watch the 15 min chart for BULLISH price action and formations or pullbacks with a reading of <25% on the 25 min chart and look to go LONG when something stands out according to our rules

Just identify on a chart a decent opportunity and then drill down to work out what was doing what, when and how you could have exploited it to your favour

ok, thanks
success counts

This is what I meant about dual time-frames

DAILY - This chart shows the explosion bar, the PRIOR bar, was 2RSI <25% = get ready for a possible up move reversal of some degree



Intra-day - Look for set-up and get in if possible



Your entry and stop are right on that last RED bar just above the pink dash = much more than 3R return - you only need a few of those during the year to kill it at this game

I MANAGED the position on the DAILY chart, which got out much higher - WHY?

Because EVERYTHING was in place for the DAILY chart to go higher

This is from TODAY

Another multiple R profit trade

Daily was in a position for the p[ast few days for a "pop" higher based on everything discussed



Then it wasn't until TODAY that the 15 min chart got its act together and formed a tradable formation (twice) and bingo