Available from Alchemy Trading Technologies Inc.
The Alchemy Overbought/Oversold indicators spot overbought and oversold conditions on up to two oscillators on a single data series or on up to two different data series. In a strong trending market, oscillators can remain in overbought/oversold territory for a long period of time before prices change direction and in order to signal a turnaround of prices, a cross of a faster oscillator is commonly used. For example, when the Stochastics D is in overbought territory and the faster oscillator Stochastics K crosses below the Stochastics D, it signals that prices may get ready to fall. Vice versa, when the Stochastics D is in oversold territory and the faster oscillator Stochastics K crosses over the Stochastics D, it signals that prices may get ready to rise. The Alchemy Overbought/Oversold indicators contain a separate crossover oscillator for each one of the two oversold/overbought oscillators that can be used to require such crosses in order to trigger an overbought/oversold alert.
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