Overbought/Oversold Indicators for MT5

Overbought/Oversold Indicators for MT5

by The Specialist -
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Obos Indicator

Obos Indicator for MT5

The Obos Indicator, also known as the OBOS (Overbought/Oversold) Indicator, typically consists of two main parts: the overbought and oversold levels, often set at 70 and 30, respectively. It helps traders identify potential reversal points in the market by signaling when an asset may be overbought (suggesting a potential drop) or oversold (suggesting a potential rise). Traders typically enter long positions when the indicator drops below 30 and starts rising, while they might consider short positions when it exceeds 70 and begins to decline. Proper risk management and confirmation from other indicators are essential when using the OBOS Indicator for making trade entries.