The RSI Signals Indicator is an innovative tool that assists Forex traders by providing valuable data in a user-friendly dashboard format. This tool offers a snapshot of the Relative Strength Index (RSI), a crucial technical indicator in Forex trading. The RSI Signals Indicator is not a standalone trading system, but rather a supporting tool that enhances existing trading strategies.
Configurable Display
The user has the freedom to customize the display of the RSI Signals Indicator to suit their trading strategies. Specifically, it can show signals when the RSI is in an overbought or oversold condition, when it crosses these levels, or when it crosses the crucial 50 level. While it must be noted that RSI signals are not always accurate, as it is with any technical indicator, this tool can provide useful insights for Forex traders.
Indicator Parameters
The RSI Signals Indicator comes with several adjustable parameters, adding to its flexibility. The ‘Applied Price’ parameter allows users to select the price type used in the calculation of the indicator, with the closing price being the default option. The ‘RSI period’ parameter determines the number of periods used in the RSI calculation. By default, it is set at 14 periods.
Market and Time Frame Selection
Another notable feature of the RSI Signals Indicator is the ‘List of Markets’ parameter. Here, traders can select the markets or currency pairs they want to apply the RSI values to. The indicator defaults to showing the EURUSD, GBPUSD, USDJPY, and AUDUSD pairs, but it can accommodate as many pairs as the broker offers on the platform.
In addition, the ‘Time_frames’ parameter allows traders to specify the time frames they want to calculate the RSI for each currency pair. The indicator defaults to displaying the M5, M15, M30, H1, H4, D1, and W1 timeframes.
Overbought and Oversold Signals
The RSI Signals Indicator can also be configured to display overbought and oversold signals. The default setting for this is ‘False’, meaning it does not display these signals. However, if a trader wishes to see these signals, they can simply change the setting to ‘True’. The overbought level is set at 70, and the oversold level is set at 30 by default.
Moreover, users can customize the colors of overbought and oversold readings on the dashboard. This provides a visual cue which can be helpful in fast-paced Forex trading.
RSI Crossovers of Level 50
The RSI Signals Indicator can display signals of bullish and bearish crosses of the 50 level of the RSI, depending on whether the ‘RSI Crossovers of Level 50’ parameter is set to ‘True’. The default setting for this parameter is ‘False’. Users can also customize the colors of the bullish and bearish crossovers of the RSI 50 level.
FAQs
How do I add new currency pairs in the ‘Markets’ parameter?
To add new currency pairs in ‘Markets’, write the symbol of the pair, for example, XAUUSD, without the ‘/’ symbol and separated by a comma (no spaces).
How are overbought and oversold signals shown?
Overbought and oversold signals are shown by changes in the color of the RSI boxes. When the RSI is in an overbought condition the box turns red and when it is oversold it turns green.
For independent testing of the RSI Signals Indicator, users can visit the forexroboteasy.com website. Users can also subscribe to updates on the results of testing this product. We welcome readers to share their experience of using this product. This review is independent and not affiliated with the product’s developer.
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