RSIonMA RSI on Moving Average MA Indicator For MT4
Table Of Contents:
- RSIonMA RSI on Moving Average MA Indicator For MT4
- Adding levels to the indicators
- Shorting the EURUSD pair
- Using it to scalp the market
- Learn the price action signal
- Using different levels
- Avoid the major news
Everyone knows the moving average or MA is one of the prominent indicators to find great trades. But very few Forex traders or investors know the proper technique to use these tools. Eventually, they end up using too many MA or moving averages and fail to find quality trades. To avoid this problem, many retail traders use the custom RSIonMA RSI on Moving Average MA Indicator For MT4. The indicator doesn’t display any complex data rather it gives the signal in a different window just below the price charts.
The new traders might think the RSIonMA RSI on Moving Average MA Indicator For MT4 works like an oscillator which determines the selling and buying zone. They are right to a certain extent but the signals are much more accurate than oscillators. Popular oscillators like RSI, stochastic are leading indicators. This means you will never get real-time signals to execute the trade. But if you use the RSIonMA RSI on Moving Average MA Indicator For MT4, you can trade on real-time signals.
Adding levels to the indicators
Once you install the RSIonMA RSI on Moving Average MA Indicator For MT4, you will not find any specific levels. To find trade signals you need to add specific levels to the indicator window. At the initial stage, you can add the 20 and 80 marks since it will help you to find the potential selling and buying zone. If the curve hits the 20 marks, look for buying opportunity. On the contrary, if the curve hits the 80 mark look for selling or shorting opportunity. If you are not sure about the use of RSIonMA RSI on Moving Average MA Indicator For MT4 can use these tools very efficiently to make a profit. Let’s see a real trade setup based on this indicator.
Shorting the EURUSD pair
Executing random trades is not so easy. But if you look at the experienced traders, you will notice they are easily finding high-quality trades. Does this mean, they have access to secret ingredients? The obvious answer is NO. By using some chart patterns and other essential parameters, you can spot quality trades at any market condition. Those who are inexperienced can use the RSIonMA RSI on Moving Average MA Indicator For MT4 to filter out the false trade setup. Let’s see sell trade setup in the EURUSD pair.
Figure: Using the RSIonMA RSI on Moving Average MA Indicator For MT4
We have a nice head and shoulder chart pattern in the daily chart. Most of the aggressive traders will short the pair after the breakout of the neckline. But the smart traders will always use readings from smart indicators like RSIonMA RSI on Moving Average MA Indicator For MT4. Before the completion of the head and shoulder pattern, you can notice the indicator curve is floating above the 80 marks. This means the sellers or bears are slowly getting ready to push the price down. Since you don’t have a breakout of the neckline, you should not go for a short trade. Right after the breach of the neckline short the EURUSD pair with confidence since you have already confirmed from the indicator.
Using it to scalp the market
The RSIonMA RSI on Moving Average MA Indicator For MT4 can also be used to scalp the market. Those who are amateur in Forex trading profession, should not use this indicator to trade a lower time frame. But if you are skilled, scalp the 55 or 100 day SMA depending on the confirmation of the signal or readings from the indicator. If possible, use the price action or PA signal so that you can open trades with tight stops. Those who think scalping is the easiest or safest way to make a profit are making a big mistake. Scalping is one of the most dangerous ways to make a profit. You might be using the best indicator to filter quality trades, but there is no assurance you will make a profit from a certain trade. So, be ready to lose trades or else you might have ough time in trading.
Learn the price action signal
If you want to get benefit from the RSIonMA RSI on Moving, the probability is high you will lose most of the trade. Unlike other indicators or tools, the RSIonMA RSI on Moving Average MA Indicator For MT4 will warn you about the potential opportunity But if you understand price action and incorporate it with the price action signals, you can identify high-quality trades.
Using different levels
Those who think the 20 or 80 level is the absolute level to trade, is committing a big mistake. If you want to ensure quality executions, you can use the 30 and 70 marks. But if you use the 30 and 70 marks, you must use the D1 or weekly chart. Most of the time, the naïve traders think the W1 chart is only for the position traders. But this chart can also be used to filter the potential trades. Though the W1 period trading strategy is extremely monotonous, it is the most efficient method to make great trades.
Avoid the major news
Never try to use the readings of the RSIonMA RSI on Moving Average MA Indicator For MT4 to trade during the major or vital news. Most of the time the false spikes and breakout are the results of the major news. Try to learn the assessment of the fundamental so that you can scale the trade and protect your investment. But at the initial stage, it’s better to avoid executing any trades based on the RSIonMA RSI on Moving Average MA Indicator For MT4 during news time.