HEAT WAVES: MAKES THE TREND ANALYZER HOT
We have added new indicator called HEAT WAVES in Trend Analyzer which can provide an edge to traders in trading.
What are HEAT WAVES ?
HEAT WAVES is the indicator that indicates the strength of a stock that means it shows how much oversold or overbought the stock is. Red colour shows the stock is oversold and green colour reflects the overbought condition of the stock.
Bright colour shows the level or strength of overbought / oversold condition in the stock.
HOW TO USE HEAT WAVES:
HEAT WAVES does not work independently, it works best on momentum indicators. Therefore traders need to apply any indicator before applying HEAT WAVES . Let say user apply CCI, then HEAT WAVES will show the level of overbought/oversold condition in the stock as per CCI.
Similarly traders can apply different indiacators like RSI and measure the strength of overbought/ oversold condition in the stock.
Traders are advised to take signal in the direction of momentum that means in an uptrend traders should look for buying signals provided by HEAT WAVES, similarly in down trending stocks traders should search for sell signals as per HEAT WAVES.
Here are the few examples:
HEAT WAVES also helps day traders in getting some high probability trades.HERE is example of HCC which provides buy signal on 60-Min chart.
