Cluster-RSI indicator calculates the behavior of each currency (using the RSI indicator) of the 8 major currencies (EUR, USD, GBP, AUD, NZD, CAD, CHF, JPY).
Cluster-RSI remembers two lines for each currency on the chart. For example, if we set on EURUSD chart indicator, it will draw 2 lines: one for the EUR, and the second for the USD.
The difference between the classic RSI indicator and the indicator Cluster-RSI
Classic RSI indicator measures the speed and change of price movements; this useful feature when we use an indicator of the stock market or CFD, as the stock or CFD price is not involved in other symbols. Thus, when the indicator compares the recent average profit and the recent average loss to determine the conditions of overbought and oversold, it will be easy to prepare for the transaction.
But in the Forex market, one currency is involved in several pairs, so for trade with RSI is preferable to take into account the overall average income and the overall average loss of the currency, to fully understand the behavior of prices.
Attention: LED can work on multiple pairs. To test indicator in Strategy Tester should wait at least 1 minute to display calculated data. On a real chart it is much faster.
- RSIPeriod: the value of the RSI indicator, the default – 14.
- RSI MVA Period: MVA period to smooth the RSI line by default – 5.
How to use the indicator in trade
- The intersection of two lines.
- For intraday timeframe. It works well when we use multiple timeframes, and consider the intersection of the whole trend. https://charts.mql5.com/8/365/nzdjpy-h1-forex-capital-markets-crossess.png
- On the daily charts, we consider the intersection in the direction of the moving average (for example, if the price is lower 200MVA, crossing from the bottom up are taken into account, and if the price is lower 200MVA, accounted for crossing from top to bottom).
- Overbought and oversold with the divergence: “works well on daily charts’
- first line currency (the base currency or first currency in the symbol) overbought.
- The price reaches a higher high and a higher low.
- Second currency makes divergence.
When trading long positions we get out of the market. You can also wait for the next signal that the first line has crossed the second line from the bottom up, and take a short position.
PZ Lopez Channel Lopez Channel multiple timeframe indicator determines the market trend when trading within a narrow price range. It is very easy to…
Risk Reward Ratio Indicator Demo Investing in financial markets associated with the risk. sometimes deals It brings a loss, so it is important to keep…
Consolidation levels On any chart pattern present consolidation, which is also called accumulation or accumulation. Are areas where the market was…
- Control Trading Relative Strength
- Hamirta MTF CCI