Stochastic RSI OMA Indicator For MT5
Table Of Contents:
- Stochastic RSI OMA Indicator For MT5
- Trading ideas with the Stochastic RSI OMA Indicator For MT5
- Stochastic RSI OMA Indicator For MT5 - Buy Entries
- Stochastic RSI OMA Indicator For MT5 - Sell Entries
- Stochastic RSI OMA Indicator For MT5 - Conclusion
The Stochastic RSI OMA Indicator For MT5 calculates the stochastic of 7 different RSI methods. The RSI methods are: Cuttlers RSI, Ehlers smoothed RSI, Harris RSI, RAPID RSI, RSI, RSX and Slow RSI. An additional smoothing method is used. You can configure the signal levels floating, quantile or fixed according to your preference. THe indicator will even generate alerts when signals occur.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
The Stochastic RSI OMA Indicator For MT5 analyzes stochastic and the RSI value in the most advanced format. Cuttler's, Ehlers' smoothed, Harris', RSI, RSX, and Slow RSI is used in calculating the RSI value for this indicator. For the stochastic, the indicator uses the generic formula.
Seeing the long list of a complex formula, it should be pretty clear that the indicator works with some advanced trade filter tools. But using it with the existing trading method is a different task. You have to certain the system that you are relying upon has an excellent win rate. To be precise, the minimum win rate must be over 70%.
Now let’s come to the indicator data window. The indicator shows the data in three layers signal line. The bottom and top part of the signal line gets covered with the colored cloud. The brown color cloud at the bottom of the indicator tells us the sellers are exhausted and ready to push the price to a new high. On the contrary, the green color cloud at the top of the indicator tells us the price is ready to fall to a new low. Based on the formation of the cloud and position of the trade setup, this indicator can help us to determine the perfect trading zone.
Trading ideas with the Stochastic RSI OMA Indicator For MT5
The new traders don’t have the basic idea to deal with the advanced oscillators. They are always taking aggressive steps and considering the reading from the indicator with negligence. But the users of the Stochastic RSI (OMA) must be careful about the trade execution method.
They must find the potential trade setup in the higher time frame based trading method so that the key support and resistance levels are focused during the trade execution process. It might take a while to get used to a long-term trading method but once you do, you never focus on a short time frame trading method.
And remember, the reading from the Stochastic RSI (OMA) should be taken after the trade signal is formed. If you intend to take the trade prior to the formation of the trade signal, you will be in great trouble. Consider the indicator as a filter tool and only then you can boost your profit and take trades with a great level of ease.
Stochastic RSI OMA Indicator For MT5 - Buy Entries
Stochastic RSI OMA Indicator For MT5 - Sell Entries
Taking a new short trade at the resistance level mostly depends on your skills. If you intend to earn more, the key resistance level must be traded. In case, your system offers you a breakout trading method, you need to find the minor support zone. The minor support zone often gets broken and it offers the retail traders decent profit-taking opportunity. Those who rely on too many indicators won’t get any quality signals. Instead, they should move to the price action method.
Look for the prominent price action pattern at the resistance zone. For the break of the support, look for a strong bearish candle. As you find the trade signal, take the data from the Stochastic RSI OMA. The grey signal line should cross below the top boundary of the indicator. The indicator must print a green color cloud at the top of the band which is the indication of gaining strength of the sellers.
As you get the confirmation, examine the risk factor. The risk exposure level should never exceed 2% of the equity. Regarding the trade management technique, the minimum RR ratio is 1:3. The smart investors often go for a 1:5 RR ratio. After using the Stochastic RSI OMA for a few weeks, you might consider it the best trade filter tool. But be cautious about the trading model or else get ready to lose money most of the time.
Stochastic RSI OMA Indicator For MT5 - Conclusion
The function of any indicator is limited to the trade filtering process only. If a trader starts expecting more from the indicator, the result will be dangerous. Have a look at the Stochastic RSI OMA Indicator and see how it performs as a standalone strategy. You won’t be able to get a robust trade setup.
But if you consider it as a filter tool, soon you will notice the indicator has the potential to eliminate the false trade setups. In fact, a good trader can easily spot the best signal by using the steps mentioned in this article. Since stochastic and RSI tells us about the key reversal zone, the novice might think the indicator is created for the reversal trading strategy.
But in reality, it is one of the best trend trading indicator. Regarding the major news, never expect rational behavior from the market. You have to prepare to deal with the worst-case scenario. If required, get the demo account and see how the market moves on such events. Soon you will no longer intend to trade the key news just to take advantage of the volatility. Pick the trading hours based on the scheduled news as it can significantly improve your performance. Once you start taking the trades with the Stochastic RSI OMA Indicator, you will be able to scale the trade according to the state of the market.
