Key Reversal Indicator – A Quick Update (Hitting Overheated Level)

We wrote about the levels on the Key Reversal Indicator earlier today and now have an update as the level increased with today’s market action to a 4. This is the area where we will often see a turn in trend to relieve the excess buying or selling pressure.

When it reaches a 5 this particular indicator that we have created often is calling for a rather swift and deep reversal. The current level is to be viewed as a warning that there is an overheated condition that is being measured.

This will be a good test of the potential ability and use of this indicator as a predictive tool.