Sell Signal: Histogram cross below the zero levels
When histogram reaches the line, chances are a reversal or consolidation may follow. However, in strong trends, the histogram may overshoot the line for may bars before slowing down. This can be used to book profits and open trades if reversal is confirmed by other indicators or price action. Like all indicators, Kase Peak Oscillator also generate whipsaws in consolidating markets.
Divergence between the histogram and price bars present good trading opportunities. When price makes new lows and the oscillator fails to make new lows, it is a divergence between the price and the oscillator. When divergence happens, there is high probability that trend reverse upward. For trend reversal down, price makes new high and oscillator fail to reach a new high.
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