RSI 2 Time Frames Indicator For MT4
Table Of Contents:
- RSI 2 Time Frames Indicator For MT4
- Period and new time frame
- Waiting for the trade setup
- Dealing with false signals
- Predicting the wild spikes
- Technical and fundamental analysis
Every trader knows about the famous RSI indicator. But making a consistent profit based on the regular RSI is not so easy. You have to modify the default settings and use other essential tools to improve your win rate. Such a hassle can be easily avoided by using the RSI 2 Time Frames Indicator For MT4. The indicators prints real-time oversold or overbought conditions of the investment market based on user-defined data. However, if you intend to use the default settings, it's more than perfect since the default settings have gone through extensive testing in the demo platform.
Relying on indicators is a big mistake in trading. The RSI 2 Time Frames Indicator For MT4 might offer all the potential signals but still, you have to find the exact trading zone based on important tools. Tools like trend line, Fibonacci retracement, channel, etc. can be used to spot the best trading zone. Once you have your trading zone, wait for the RSI 2 Time Frames Indicator For MT4 signal and open a new trade with predefined or organized stops and take profit.
Period and new time frame
The calculations in the RSI 2 Time Frames Indicator For MT4 is based on two different input. The first one is the 14 period which is the same for our traditional Relative Strength Index tools or indicator. The second one is the “New Time” which uses 60 periods. Based on these two inputs, the indicators generate and overbought and oversold signals. Though the key purpose of this tool is the same as the RSI indicator still many traders prefer this tool, due to its accuracy. It helps the investors to trade the real-time data without any delay or latency. And optimizing a few seconds in your trade execution plan will result in a huge performance boost.
Waiting for the trade setup
We have already said, the RSI 2 Time Frames Indicator For MT4 is of no use when you blindly follow the reading. Work hard so that you can take benefit of the other essential tools to improve your success rate. Most of the trend traders will use the trend line or channel to place their trade but things are not only limited to these primary trading tools. Let’s see how the expert uses the Fibonacci retracement point and wait for the valuable trade signals.
Figure: Using RSI 2 Time Frames Indicator For MT4
Those who are familiar with the Fibonacci trading method know the key levels of trade. Here, the 38.2% zone is our first potential entry point where you can expect some profit by going long. Right at that instance, the RSI 2 Time Frames Indicator For MT4 value must remain near the 20 marks. The 20 marks are considered as oversold region, which means, the sellers have pushed the price too much and it’s time for the buyers to move the price higher. You can also increase the success rate by using some simple candlestick or price action (PA) signals but for that, you must learn this strategy in a demo platform.
Dealing with false signals
Using the RSI has many problems. Those who are using traditional RSI tools knows how frustrating trading can become during the false signals.Though the false signals are not absent in the RSI 2 Time Frames Indicator For MT4 still you have better change compared to the old RSI tools. To avoid getting hurt by the wild swings of price, you should analyze the D1 or higher period signals. Avoiding the lower period signals will increase the success rate to a great extent. But this will also make your trading career boring. Remember the fact, you can’t make a profit unless you learn to mitigate the excitement in trading. So, work hard on your skills and try to trade this market with patience.
Predicting the wild spikes
The RSI 2 Time Frames Indicator For MT4 can be used to predict the wild swings in the asset. Most of the time, the naïve investors lose money and blames the market. But having a close look at the RSI 2 Time Frames Indicator For MT4 will give you a clear hint when the price might break a critical zone. For instance, if the curve stays in the oversold or overbought territory for a long period, you can assume some this wrong with the market. Most of the time, such a curve results in a heavy spike or breakout. Be aware of such readings since this will protect your capital in many cases. As a new investor, try to learn its use by taking advantage of a virtual trading platform. Test different strategies with the RSI 2 Time Frames Indicator For MT4 but make sure you learn its use properly.
Technical and fundamental analysis
Everyone thinks technical analysis is enough to secure a decent profit. If this was so, no one would have cared about the economic news. To secure a better position in trading, you must develop technical skills and fundamental analysis techniques from scratch. You may have the RSI 2 Time Frames Indicator For MT4 still its better to blend the fundamental data with the technical data. Try to find a similarity between technical parameters and fundamental issues since it will help you to make better decisions.
Forget about the short profit-taking opportunity and try to think of this profession as your business. As a starter, you will have trouble with many things but once you start to find the weakness in your strategy, your trade execution plan will gradually improve. Try to develop a strong taste for learning new things as it always helps to find the faults in any strategy. And always consider the RSI 2 Time Frames Indicator For MT4 as your helping tools. Never get biased with its readings as it increases the risk significantly.