The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!
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.
Category: Technical Indicators