Price Cycle Indicator
Platform: MT5 Type: Oscillator Last update: September 22, 2024The Price Cycle (PC) indicator is a custom forex oscillator that is used by traders to reveal market cycles in the short and long term periods.
A market cycle is defined by series of repeated patterns and that gauge does pretty well in spotting such patterns.
You can customize these inputs below:
Period – defines the calculation period;
Method – defines the calculation method;
Overbought – defines the overbought level;
Oversold – defines the oversold level.
The formula for the Price Cycle indicator:
The calculations of the Price Cycle indicator are based on the following formula:
PC = MA(Close-Low) / ATR
When the indicator line moves beyond the 1-Day overbought/oversold region and the price gets close to the extreme monthly ranges, we can consider it is time to sell/buy respectively.
How to use the Price Cycle:
When the red signal line goes above the 70 mark, it is a sign of a overbought condition, therefore a bearish reversal is possible and a potential entry point for a sell trade. Similarly, When the red signal line dips below the 30 mark, it is a sign of an oversold condition, therefore a bullish reversal is possible and a potential entry point for a buy trade.
You can even manually spot divergences and apply them in your trading approach.
