Relative Breadth Index has 4 main components:
- Fast (White), Medium (Green), and Slow (Red) Oscillators
- Overbought and Oversold Thresholds (Shaded Areas)
- Pulse (Yellow)
- Divergence Indicator (Rectangles)
How does it work?
- The Medium and Slow Oscillators indicate the general trend.
- The Fast Oscillator shows what price action is doing in reference to that trend.
- Pulse suggests the probability that the current move (Fast) is an end of the trend defined by the Medium and Slow lines.
- The Divergence Indicator also suggests a reversal and to look for divergences between the Fast line and price action.
What are the signals?
- In general: green signals are , red are
- Rectangles: Look for a divergence
- Circles: Sell and buy signals
- Triangles: Stronger sell and buy signals
- Triangles: Reversal signal
What about the Pulse?
- If Pulse is low, a signal may only be a short-lived move.
- If Pulse is high, a signal may be a full-on trend reversal.
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