How do I read Red & Green Zone Reversal?
Quick answerIt shades the candles where a stock is stretched too far, too fast. Green: price closed below the lower Bollinger Band with RSI under 30 (deeply oversold). Red: above the upper band with RSI over 70 (overbought).
The details
- Green zone: sellers have overdone it; a bounce often follows.
- Red zone: buyers may be running out of room.
It is a heads-up, not a signal on its own: wait for the first candle that turns back (a green candle after the green zone) before you act, because a strong trend can stay stretched for a while.
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