Key Reversal Indicator – Markets In Equilibrium
February 10, 2013 8:46 pm
While it may seem as though there is a seriously overheated situation within the current markets, the Key Reversal Indicator is showing a reading of Markets in Equilibrium. That does not give the all clear signal to buy (or sell) at this point. Potentially, it is simply a resting area as the markets digest some of the recent moves allowing for the next leg to show its hand.
The best use of this indicator is when there is a overbought or overheated condition. When markets are in equilibrium, it means that the buying and selling pressure as well as the force behind the move is balanced. For now, there are pressures that have been seen on both sides, although the buyers are clearly in charge at the moment.