DynamicRS Indicator For MT4
Table Of Contents:
- DynamicRS Indicator For MT4
- Trading ideas with the DynamicRS Indicator For MT4
- DynamicRS Indicator For MT4 - Buy Entries
- DynamicRS Indicator For MT4 - Sell Entries
The DynamicRS Indicator For MT4 resembles a Moving Average curve, but filters the price noises better. A candle body forming completely above the indicator line can be deemed to represent a bullish signal. Conversely, a candle body forming completely below the indicator line can signify bearish price action.
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Trading ideas with the DynamicRS Indicator For MT4
The DynamicRS indicator acts as a moving average which gives out a square signal as an oscillator across the trading screen. As mentioned in the introduction, when price breaks this line to the upside then that should be seen as a bullish signal, and when the price action breaks and closes below the DynamicRS line it should be deemed or regarded as a bearish signal. That is the basic principle behind this indicator.
What is great is that because of the way the indicator was created, it is able to extract most of the disturbance of the price activity. I have attached the indicator below but the only problem is that the color of the indicator is yellow and my background is which makes it difficult for me to clearly track the movement of the price action relative to the DynamicRS line.
So what I am going to do now is just make a slight adjustment. I am going to change the color of the oscillator to make it slightly darker so that I can clearly monitor the movement of the DynamicRS line. I will just go over to the editing menu of the custom indicator and click on colors.
Then I will double click on the yellow bar and then below it, more colors should show up. I will go with a blue line because it helps me to analyze the market appropriately and also in identifying the indicator itself as it oscillates about my trading screen.
DynamicRS Indicator For MT4 - Buy Entries
Now that we made that little adjustment - respective buy and sell signals will be provided to show you what proper signals or entries look like. Below I have attached a screenshot which shows a total of four buying opportunities that you could have capitalized on.
As you can see I have labeled them from left to right and from - 1 to 4. Starting off with number one, we saw that there was a bullish engulfing pattern printed on the indicator. So the towering candlestick of the bullish engulfing pattern actually broke and closed above the indicator or the blue line.
This is a strong indication that the market was going to make an upward move. Secondly, there was another bullish engulfing pattern printed on the blue line. It may not be as a parent as the first example but it is still a strong trade setup because the candles are not so long, therefore, in this, you will yield a better risk-to-reward ratio. Then we have the third example which is slightly different from the previous two ones.
There was a sharp descent before the price action broke and close above the blue Line for an upward surge. But at this point, one candlestick was Enough to follow through with a buy trade, hence why I pointed out in the screenshot that we would rather wait for the opening price of the last bearish candlestick to be taken out.
This will be the entry point for our buy position. Then you can just place a stop loss below the last previous swing low. This is just to give you an idea of all the different type of trade setups which could occur if you were to use this indicator officially. On the far-right, the fourth example we have is a stronger buy set up.
The reason why I put an emphasis on the strength of this buy setup is that if you look in the circled area you will find that there were multiple bullish patterns that formed in fact there were more than two bullish engulfing patterns that formed during this period. So that was also another good opportunity to buy.
DynamicRS Indicator For MT4 - Sell Entries
Up next we have a few sell signals that were identified. There were four available as per the screenshot but we will just go through them briefly.
On the far left, we have a bearish engulfing pattern which formed right on the blue line. Therefore, it was a good moment to sell and also the candlesticks were a decent size thus making the risk-to-reward ratio more generous.
On the second trade setup, we saw a downward break on the blue line and a successful close below this blue line. The best moment to sell was when the opening price of the previous bullish candlestick was taken out. We have another two bearish engulfing patterns that were formed in the next two examples. These bearish engulfing patterns formed right on the blue line.
Just to conclude, I will like to finish off by saying that all of the above examples illustrated to you how simple it is to trade when using a tool of this quality such as the DynamicRS indicator. This just shows the power of having the right tools in your possession as well as the right skill set. When you have the know-how, then you can focused and apply your efforts in attempting to maximize the potential of the DynamicRS indicator.
