The bigger the distance between an open price and the closing price, the farther we are from normality. Is that information useful in formulating reversal strategies? This article discusses the cooldown indicator which deals with this issue. We will also see a strategy where it is combined with the RSI.
Keep reading with a 7-day free trial
Subscribe to All About Trading! to keep reading this post and get 7 days of free access to the full post archives.