Sell relative strength index Indicator For MT4

Sell relative strength index Indicator For MT4

Table Of Contents:

  1. Sell relative strength index Indicator For MT4
  2. Trading ideas with the Sell relative strength index Indicator For MT4
  3. Interpreting the Sell relative strength index Indicator For MT4
  4. Sell relative strength index Indicator For MT4 - Buy Entries
  5. Sell relative strength index Indicator For MT4 - Sell Entries
  6. Sell relative strength index Indicator For MT4 - Conclusion

The Sell relative strength index Indicator For MT4 is an indicator which was created using the power of the Relative Strength Index and the profit accumulation sizing to give traders a highly probable opportunity to profit from rapid sell offs in the market which tends to occur very often. It does not end there though, as it is not meant solely for detecting sell trade setups but you may also use it for identifying opportunities in the market to open buy trades. This can be done using the colour legend of the indicator so when the indicator is yellow it means that buying and selling is fairly equal, green signals a buy opportunity and red signals a sell opportunity.

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Trading ideas with the Sell relative strength index Indicator For MT4




Having been built based on the relative strength index (RSI), the Sell relative strength index Indicator For MT4 is a great tool when it comes to identifying if the strength of the market price changes, and thus helping traders judge if they should enter a trade or not.

In the sections below, we shall look at how to interpret and use the Sell relative strength index Indicator For MT4 to enter and close trades.

As stated in the section above, the Sell relative strength index Indicator For MT4 plots a coloured indicator line in an indicator chart below the main trading chart. The plotted indicator line rises and falls just as the standard RSI indicator line would. The only difference between the Sell relative strength index Indicator For MT4 and the standard RSI is that the indicator line plotted by the Sell relative strength index Indicator For MT4 is coloured and there are no overbought and oversold levels indicated while the indicator line plotted by the standard RSI is not coloured and has overbought and oversold levels shown.



Interpreting the Sell relative strength index Indicator For MT4


Besides measuring the magnitude of recent price changes, the Sell relative strength index Indicator For MT4 also shows the current market trend for traders to make informed decisions. This makes it easy for trader especially beginners who find it very hard and complicated to interpret the RSI indicator.

Also, when using the Sell relative strength index Indicator For MT4, there is no need for using an additional trend indicator since the Sell relative strength index Indicator For MT4 already indicates the trend.

The colour of the Sell relative strength index Indicator For MT4 indicator line alternates between yellow, MediumSeaGreen, and OrangeRed.

When the line is yellow, it shows that the market is not trending or it is in consolidation.

When the line is OrangeRed, it shows that the market is in a bearish trend.

When the line MediumSeaGreen, it shows that the market is in a bullish trend.

But let’s see how you should place your trades after identifying the market trend and looking at the rising and falling of the indicator line.


Sell relative strength index Indicator For MT4 - Buy Entries


Just like when using the standard RSI where the direction of the RSI corresponds to the trend, for you to place a BUY trade using the Sell relative strength index Indicator For MT4 indicator, you should look for a bullish movement in the indicator line besides the MediumSeaGreen colour.

That means that for you to place a buy trade, the indicator line should be MediumSeaGreen in colour and in a bullish trend.

If the indicator line is in a bearish trend and still MediumSeaGreen in colour, it is an indication that there is a bullish trend whose momentum is residing and placing a trade at such a time could result to a loss or very little profit since it could only be a matter of seconds or minutes before the trend changes to bearish.

The BUY trade should be closed when a colour change occurs. Better still, you could also incorporate the standard RSI indicator to tell when the market gets to the overbought condition.

When using the RSI indicator, you should close the BUY trade when the overbought level is crossed.



Sell relative strength index Indicator For MT4 - Sell Entries


Opposite to when placing a BUY trade using the Sell relative strength index Indicator For MT4 indicator, when placing a SELL trade, you should look for a bearish movement in the indicator line besides the OrangeRed colour.

That means that for you to place a SELL trade, the indicator line should be OrangeRed in colour and in a bearish trend.

If the indicator line is in a bullish trend and still OrangeRed in colour, it is an indication that there is a bearish trend whose momentum is residing and placing a trade at such a time could result to a loss or very little profit since it could only be a matter of seconds or minutes before the trend changes to bullish.

The SELL trade should be closed when a colour change occurs. Better still, you could also incorporate the standard RSI indicator to tell when the market gets to the oversold condition.

When using the RSI indicator, you should close the SELL trade when the oversold level is crossed.



Sell relative strength index Indicator For MT4 - Conclusion


Although the Sell relative strength index Indicator For MT4 does not show the oversold and overbought condition levels, it is a great indicator for those who wish to use the RSI concept to place and close trades.

The beauty of it is that it does not require the trader to think too much when interpreting the indicator since the colours help in identifying the market trend that the indicator is indicating. Just by taking a glance at the indicator line colour, the trader can be able to tell if the market is bullish or not and thus quickly placing the right type of trade.

However, you could combine it with another indicator’ either a trend indicator or a momentum indicator like the standard RSI as we have done in this guide, to help you identify when to close the trades.

 

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