Like the RSI and Stochastic, the Belkhayate Timing Indicator is also an oscillator. It was designed by Mustapha Belkhayate, and it's used to identify possible points where a trader can buy or sell an asset. As with any indicator, it's best used in conjunction with another indicator (like the Bollinger Bands). You can read about the Bollinger Bands on this page.
The Belkhayate has three zones; a green, middle (colorless), and a red one. Let's talk about the middle zone, as this is the most important one of them all.
When the chart is in this area it's recommended that you do not enter a trade. The chances that your trade will be a successful one is 50%. Let's take this center zone as the market centre of gravity. The price of an asset is expected to oscillate about this point. The green and red zones can be considered as the support and resistance levels.
In the image, you can clearly see the price chart hitting both the green & red zones, as well as spending some time in the middle one.
Interpreting the Belkhayate is quite simple. As was previously mentioned, avoid entering a trade when it's in the middle (red box in the image above). There just isn't strong enough a signal here. When it hits the red or green zones, you can expect a trend reversal.
When the price chart hits or even slightly touches the zone, one can expect the trend to fall back down, as is shown in the image.
If it enters this area, that's a sign that there could be a trend reversal into a bullish state.
On rare occasions, the price can cross the green or red zones, and go into what's known as the 'transparent zones' (above the red and below the green). In this area, the signal strength is very strong, and you can definitely expect an almost immediate reversal in the price.
Now, it's time to get you to practice using the Belkhayate Timing indicator for yourself. Choose your platform below.
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