the "Tops & Bottoms" indicator is one part of our holistic approach to identifying trading setups. It is one of many indcators of our dize indicator package and should always be used in conjunction with the other dize indicators.
π‘ What is the Tops & Bottoms indicator?
The "Tops and Bottoms" indicator is a momentum indicator that gives us clues as to when a market might turn around or how intact the current trend is. When calculating, we use statistical methods that provide us with indications of abnormal market behavior. The indicator comes with Multi-Timeframe support, which makes it easy to get an overview on what is happening on other timeframes.
π‘How to use it?
The indicator has one calculation parameter. The "Sensitivity" parameter specifies how many candles are considered in the calculation. The resolution parameter instead tells the indicator on which timeframe it should be calculated. Please be aware, that the selected timeframe should always be higher than the displayed chart timeframe. The upper and lower visual bands of the indicator act as a threshold to detect abnormal market behavior. Furthermore, the appearance of the indicator can be changed using the selected colors.
Let's have a look:
Using the indicator on the same timeframe:
Using the indicator on a higher timeframe:
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