We think this tip might suit well for newbie traders or any trader who wants to sharpen their strategies. Placing an order in the Overbought/Oversold (OB/OS) area is nothing new, but we want to mention the "Extreme" overbought/oversold zone that could bring Higher rewards. Rather than a long explanation, we’ve broken it down into 4 steps of how we normally find this Extreme zone (please refer to the photo for better understanding): 1. As usual, just wait until your oscillator generates signals and identify a dependable OB/OS Zone (If you can, use the overlap of more than 1 oscillator would possibly increase the reliability, in the illustration below we have used 3) You can totally Enter/Exit the market at this point, or you can be patient for a chance of higher rewards. 2. Find the Extreme OB/OS area, which is right above/below the regular OB/OS zone. This is where the price gets intense and keeps moving in the same direction, surpassing the regular Overbought/Oversold zone. 3. Look for the Reversal bar, which appears at the weakest point of the buying/selling momentum. This is the golden opportunity you need to catch and rush to the next step. 4. Quickly place your order at the selected Reversal candle with high expectations of great returns. Now we think your trades are boosted with higher reliability while you gain more confidence to Enter/Exit the market. (It’s even better if you could add speed and precision to your order placement) And yes, that's what we want to share for now. What do you think about our tip? Please let us know in the comment section.
So how much are the enhanced rewards? Surely you must have measured them to know that they're enhanced, yes? And as Einstein said, a thing that has not been measured cannot be understood.
You are right, it's hard to be measured to millimeters. However, if we can buy at a lower price (in the extreme OS zone, instead of the regular OS region), then we will clearly have a better reward for that trade, assuming all else is equal.
I never suggested measuring in millimeters was difficult, in fact measuring in millimeters is not hard at all, and even micrometers or nanometers. So you have not measured anything and have no basis to substantiate your claim of enhanced rewards.
Assuming you take profit at the same place. Then if your entry is in the normal OS zone: you get 12 ticks profit. If you place the entry in the extreme OS area: you get 18 ticks profit. It's clearly a higher reward, my friend