Read the Midas Overbought Oversold Indicator

How the overbought and oversold scale appears

Oscillators help you determine overheating, the moment when the movement has gone far and the market can turn around. It's dangerous to use one oscillator, because there will be many false signals, and you can't keep track of them all at once.

The simple scale at the bottom of the indicator conveniently shows the level of overheating at once for the six most popular oscillators: RSI, Stochastic RSI, Stochastic, MFI, CCI and Momentum.

• The green color shows the overheating in favor of buyers and the strength of bulls.
• The red color shows the overheating in favor of sellers and the strength of bears.
• The brightness of the color indicates the degree of overheating: the brighter the color, the more the market will overheat.

How to use the overheat scale

Oscillators in the usual form to analyze difficult and long, and the scale of overheating is very simple.

• “Long green”: Open a trade when the panel starts to overheat green, and fix when the green scale begins to disappear.
• Short Red: Open a trade when a red overheating begins to appear on the panel, and fix when the red scale begins to disappear.

🟢 Upward move beginsBeginning of fall

When the oscillators overheat one by one, they're almost always false signals, which is why you use a complex of six, and when all six go into green overheating together, you're more likely to continue growing.

The flip side also works: when oscillators come out of the green zone en masse, this is an excuse to fix long.

When the six go into red overheating together, the probability of continuing to fall is higher.

Conversely, when oscillators come out of the red zone en masse, it is an occasion to fix the shorts.

A disciplined overheat-scale workflow

We use signals and an overheating scale. When the scale goes green overheat, we wait for Buy and open the long. When the scale goes red overheat, we wait for Sell and open the shorts.

The more oscillators that reach an extreme, the stronger the signal. It works best in the trend direction and in sideways markets on higher timeframes; experienced traders may enter earlier without waiting for the signal.