The RSI Divergence Indicator is a powerful tool in the arsenal of a forex trader. It serves a unique function of identifying divergences between the price chart and the RSI indicator, subsequently alerting the trader through different methods such as popups, mobile notifications, or emails.
Key Functionality of RSI Divergence
The primary application of the RSI Divergence Indicator is its ability to unveil potential trend reversals in the forex market. It is recommended to pair this indicator with other technical tools such as support and resistance zones, candlestick patterns, and price action for increased accuracy in detecting trend reversals.
Three Confirmation Types for RSI Divergences
The RSI Divergence Indicator offers three types of confirmations for RSI Divergences. These include the RSI line crossing the 50 level, price returning to previous H/L, and the creation of a new ZigZag leg in the price chart.
Interpreting RSI Divergence Indications
Once a divergence is confirmed, the indicator draws an arrow on the chart. However, it should be noted that this indication is not available for the new ZigZag leg confirmation type. The indicator utilizes the ZigZag Indicator for determining trend direction and HH/LL of the price.
For a more comprehensive view of the divergences, users can add the ZigZag Indicator to their chart template. The indicator parameters for ZigZag can also be customized in the input window of the RSI Divergence Indicator.
Alert Settings and Utilization
Users have the option to set the RSI Divergence Indicator to alert only when a divergence takes place in the overbought or oversold levels. Moreover, the “divergence type” buffer of the indicator can also be utilized in expert advisors for more advanced trading strategies.
Independent Testing and Updates
For those interested in witnessing the RSI Divergence Indicator in action, independent testing of the product is available on the forexroboteasy.com website. Users can also subscribe to updates on the testing results of this product.
We invite all users to share their experiences and insights gained from using this product. Your feedback can greatly benefit other traders in their journey towards mastering forex trading.
FAQ Section
What is the primary use of the RSI Divergence Indicator?
The RSI Divergence Indicator is primarily used to identify potential trend reversals in the forex market.
How does the RSI Divergence Indicator alert users?
The Indicator alerts users through various methods including popups, mobile notifications, and emails.
What are the three confirmation types for RSI Divergences?
The three confirmation types include the RSI line crossing the 50 level, price returning to previous H/L, and the creation of a new ZigZag leg in the price chart.
Can I customize the ZigZag parameters in the RSI Divergence Indicator?
Yes, the parameters for the ZigZag Indicator can be customized in the input window of the RSI Divergence Indicator.
This review is an independent assessment of the RSI Divergence Indicator and does not represent any affiliation or endorsement of the product.
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