RSI Accumulated Floating Levels Indicator For MT4
Table Of Contents:
- RSI Accumulated Floating Levels Indicator For MT4
- Trading ideas with the RSI Accumulated Floating Levels Indicator For MT4
- RSI Accumulated Floating Levels Indicator For MT4 Entries Within Divergences
- RSI Accumulated Floating Levels Indicator For MT4 Entries At Support / Resistance
- RSI Accumulated Floating Levels Indicator For MT4 - Conclusion
The RSI Accumulated Floating Levels Indicator For MT4 is a classic tool that helps the traders to find the overbought and oversold condition of the trading asset. When the signal color curve is green look for buying opportunity. On the contrary, when the signal color curve is magenta, look for the short trade setup.
Trading ideas with the RSI Accumulated Floating Levels Indicator For MT4
You can use this indicator in many ways for your trading. You could use it in isolation and act solely on the values of this indicator. But I always suggest to add additional edges to your trading.
Additional edges can be incorporated by adding additional indicators and/or by applying sound trading logic. The combination of multiple edges will always result in a higher winning percentage. And a higher winning percentage lowers the stress level during your trading.
Please remember that you will always have losing streaks with any trading system. These losing streaks can break your confidence in a system or even in yourself as a trader. Therefore, you should always aim for the highest quality in your trading which results in a high winning percentage.
So, how can you achieve a higher winning percentage by trading the signals of the RSI Accumulated Floating Levels Indicator For MT4?
I will show you now 2 possibilities to get a higher winning percentage:
1. Use MACD divergences as an additional edge
2. Use Support/Resistance as an additional edge
RSI Accumulated Floating Levels Indicator For MT4 Entries Within Divergences
Buy signals (green values) of the RSI Accumulated Floating Levels Indicator For MT4 which occur after the price moved upward away from a bullish divergence have a higher winning percentage. If you wait for such signals then you are using the compounding effect of two edges which occur at the same time.
You have the same compounding effect if you trade sell signals (red values) after the price moves downwards away from a bearish divergence. The following screenshot shows such a situation:
As you can see in the screenshot above, the MACD indicator painted a regular bearish divergence after a bigger upward trend. Such divergences are of the beginning of a new downward trend.
You are now waiting for a sell signal (red value) of the RSI Accumulated Floating Levels Indicator For MT4 and can open a sell trade.
If you are unsure how to spot regular divergences then you can get the Divergence Indicator which does the analysis for you. The divergence indicator is used by 1000+ traders and you can be assured that it does a great job at detecting regular divergences.
RSI Accumulated Floating Levels Indicator For MT4 Entries At Support / Resistance
You can use the same "trick" of adding additional edges to the signals of the indicator by using support and resistance price levels. The rejection from such a level gives you a boost for your winning percentage.
E.g. when the price approaches a support price level and if the price gets heavily (strong) rejected to the upside then you can expect that rejection to the upside will continue. Now you wait until the RSI Accumulated Floating Levels Indicator For MT4 draws a green value which gives you an additional edge and enter a buy trade.
The same can be applied within a resistance zone. If the price gets rejected to the downside after it touched a resistance price level, then you can wait for the indicator to draw red values and enter a sell trade.
The following screenshot shows exactly such a situation:
This chart formation can also be classified as a double top pattern which usually gives you a high winning percentage.
If you have trouble to spot support and resitance price level yourself then I can recommend you this Support/Resistance Indicator which can even draw the levels from different time frames.
RSI Accumulated Floating Levels Indicator For MT4 - Conclusion
It is usually a good idea to have an eye on the bigger picture of the situation of the market which you want to trade. Divergences and support/resistance levels give you such a better overview. Of course there are many other ways to apply sound trading logic to get a bigger winning percentage and less stress in your trading.