RSI Slowdown Indicator For MT4
Table Of Contents:
- RSI Slowdown Indicator For MT4
- Supply and demand zone
- Trading 4-hour time frame
- Trading the gap
- Scalping the market
- Tips and tricks
RSI Slowdown Indicator For MT4 is the advanced form of RSI indicator. Traditional RSI indicator works generate leading signals which are very hard to use in the lower time frame. But the RSI Slowdown Indicator For MT4 works more like a lagging indicator. Basically you this indicator share the properties of leading and lagging indicator which allows the retail traders to execute real-time trade.
Instead of looking at the indicator curve, you will get an upward and downward arrow in the price chart. If you notice blue upward arrow at a critical support zone, you can expect an end of the oversold condition of the market. On the contrary, a red arrow indicates, the sellers will take control of the market. But trading the market on the idea of the arrow is not enough. You must take advantage of supply and demand zone to filter the premium trades by using the RSI Slowdown Indicator For MT4.
Supply and demand zone
The supply zone offers to sell opportunity and the demand zone offers a buying opportunity. Having a clear concept of the supply and demand zone is very important. Unless you trade the major levels, you will fail to make a profit from this market. Some of you may think, you need to find the important levels in the higher time frame. But this is not all true. You need to have strong knowledge of the swing highs and lows. By joining the two highs of the market, you can draw the critical resistance. Based on the sample principle you can join two lows of the market to find your desired support zone. Once you know the technique of finding the key trading zones, look for overbought or oversold in the RSI Slowdown Indicator For MT4 to execute the trade.
Trading 4-hour time frame
Everyone thinks about the daily and weekly time frame. But do you know many pro traders are securing decent profit based on lower time frame trading strategy? Today we will give you a classic example to trade the 4-hour time frame by using the RSI Slowdown Indicator For MT4. Before we go into the details, you have to remember the importance of trend trading strategy. To take advantage of the RSI Slowdown Indicator For MT4, you must learn to trade major trend. Does this mean, we can’t trade the reversal in the lower time frame? The obvious answer is YES. To trade the reversal, you must focus on a bigger time frame. Let’s see how the professional traders trade the 4-hour time frame by using the RSI Slowdown Indicator For MT4.
Figure: trading the H4 time frame by using RSI Slowdown Indicator For MT4
You blue shaded region is our resistance or supply zone. This mean, we have to find short trade setup at the blue zone. Those who have knowledge of candlestick pattern trading strategy can easily spot a bearish pin bar. This indicator, the price will drop in the near future. Closely analyze the bearish pin bar and you will notice a downward red arrow of the RSI Slowdown Indicator For MT4. This means, the bears have taken control and the asset is in the overbought state. So, sell the pair with a tight stop and ride the trend.
Trading the gap
Those who trade the lower time frame often miss a good trade setup. For instance, you might miss the first opportunity in the previous example. But if you analyze the chart you will notice a big gap down in the price (yellow shaded region). In most case, the price covers such a gap quickly and gives the trader a new opportunity to trade with the major trend. Wait for new downward arrow in the RSI Slowdown Indicator For MT4 to execute your trade in favor of the trend.
Scalping the market
Can we use the RSI Slowdown Indicator For MT4 to scalp the market? The answer greatly depends on the trader’s skill. Unless you are well experienced with the volatile market, you should not execute orders in a lower time frame. Forex trading business is all about precision. Without following the proper logic, it's really hard to find perfect trade setup. To scalp the market, you must use the fundamental data along with the signal of the RSI Slowdown Indicator For MT4. Those who think learning fundamental analysis is hard is making a big mistake. In fact, learning to analyze fundamental data is extremely easy. Focus on the major market news and try to relate with the readings of the RSI Slowdown Indicator For MT4. If both form market analysis suggests the same idea, take the trade. And never take too much risk if you intend to scalp the market based on this indicator.
Tips and tricks
Things are not only limited to scalping or lower time frame trading. If you understand the logical use of RSI Slowdown Indicator For MT4, you can significantly boost the win rate ratio. You can use the 100 and 200 days SMA and trade the market like a pro trader. For instance, the 100 day SMA acts as rigid support and resistance point. Most of the time price respect this level and provide a unique trading opportunity. So, look for red or blue arrow in the RSI Slowdown Indicator For MT4 right at the SMA. If you find a signal in the indicator, execute the trade with low risk.
You can also trail the stop loss in each trade by using the RSI Slowdown Indicator For MT4. Let’s say, you have executed long trade in the EURUSD pair. After a certain time, you have noticed a blue arrow. Set the stop loss just below the blue arrow and ride the trend. By following this simple process, you can improve your profit factor to a great extent. But never forget the losing trades are inevitable. So, be prepared to accept a few lose even though you will follow the proper guideline. Think smart and trade with low risk.