A technical indicator developed by Donald Dorsey. It measures the difference between High and Low prices in order to identify reversals. Trading signals are triggered when a “reversal bulge” is identified. That is, a reading above 27.0 and then a decline of the indicator below 26.5.
A buy signal occurs during a downtrend and a “reversal bulge” in place.
A sell signal occurs during an uptrend and a “reversal bulge” in place.
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