RSI MA Indicator for Meta Trader 4
Table Of Contents:
- RSI MA Indicator for Meta Trader 4
- Some of the Benefits and Demerits of using the RSI MA Indicator for Meta Trader 4
The RSI MA Indicator for Meta Trader 4 is an indicator that is based on the Relative Strength Index and the Moving Average. It is built on the Meta Trader 4 charting platform and is used to tell traders exactly what the general trend direction is and also helps the traders to identify opportunities to enter trades in the direction of the trend. This indicator has a lot of benefits to offer the average trader and some of the benefits are outlined and discussed below.
Some of the Benefits and Demerits of using the RSI MA Indicator for Meta Trader 4
One of the major advantages a trader who uses the RSI MA Indicator for Meta Trader 4 will enjoy is the fact that they will always know the general trend direction before they step into any trades. They will not need to necessarily move up to higher timeframes in order to just ascertain general trend direction. This means that as the traders who use this indicator are trading, they will understand the general direction of the trend simply by looking at the indicator without having to look at the higher time-frame charts.
This is important as a trader makes less risk when they trade in the direction of the higher time-frame charts and every trader must make it a serious duty on their part to always try to minimize risk in their trading as much as they can.
Another very important advantage this indicator offers to traders is that it can keep a trader in a running trend. This means that the trader who uses the RSI MA Indicator for Meta Trader 4 can easily find that they can stay in a trend for as long as the trend remains up without being afraid of losing money by letting their trades keep running as the indicator will immediately notify the Trader of any changes in the direction of the trend so that the trader can take action very quickly. This is very important because of another one of the main reasons that traders lose money while trading is that they take little profits and big loses.
Traders who use the RSI MA Indicator for Meta Trader 4 can easily see that with this indicator, taking trades becomes easy as the indicator will always get the Trader into a trade and stop the Trader from remaining in the trade by printing an opposite signal once the trend changes against the Trader. This helps the trader to keep himself or herself fully aware of what is going on in the markets. Also, this helps the trader to take preventive actions if the need arises in order to prevent additional losses on their trading account. This will help the traders to readily accept trades and not be afraid of losing a lot and taking only very little profits when the trade works out.
The RSI MA Indicator for Meta Trader 4 is also great for helping the Trader identify exactly when the trend has changed as it helps him or her to clearly see the trend change through the opposite trend signals it prints for the Trader to see. This is very important for the Trader who wants to survive in the markets as only then the trader will be able to survive in the markets. Also, once a trader spots trend change in the markets, the Trader can then change their strategies or techniques in order to adapt to the new trend present in the market.
This is very important since a lot of traders lose money simply by not knowing when a trend change occurs and remaining adamantly stuck to the old trend direction, perhaps hoping that the markets will turn around and respect them enough not to change directions.
Furthermore, a trader should also be aware that although using the RSI MA Indicator for Meta Trader 4 can work on any time-frame the Trader places it on, the Trader must be willing and able to use it only on the one-hour time frame and other timeframes that are above the one-hour time frame. This means that the trader shouldn't use it on the lower timeframes especially for scalping as this indicator was not built for scalping and although it might work out pretty well on the lower timeframes, it might be very susceptible to a price spike, manipulations and fake moves which are all rampant in the lower timeframes.
As a matter of fact, most traders regard any time frame that is lower than the one hour time frame as random price activities and although that may not be entirely true, there is an element of truth to it since the lower the time frame, the lower the predictability of the market and the lower the ability of the Trader to actually predict what might happen next in the market.
Using the RSI MA Indicator for Meta Trader 4 can also work out for when traders want to enter multiple trades within a single trend every new time an opportunity for a new entry occurs in a trend. This means that a trader can spot a trend and enter a single time and then every new time a signal occurs, the Trader can then enter the new signals adding to the traders current positions so that the trader can make more profits from a single trend than they would have made from having just one trade open in the trend.
Also, it is very important that traders who use the RSI MA Indicator for Meta Trader 4 approach the risk aspect of trading with a lot of caution as arbitrary lot sizes can easily put a trader into trouble. Hence, a trader must be aware of this and ensure that they always prepare ahead of time before they enter any trades and plan ahead of time the exact size of lots that they will need for any trade once it appears so that they wouldn't have to start planning for the trade when the signals appear.