RSX arrow indicator. Signals for opening trade orders.
For successful trading it is not necessary to look for the latest analysis tools. Profits can also be obtained by using well-known, but improved indicators. I’ll tell you about one of them today. The RSX indicator is a modified version of the popular RSI, to which a simple moving average has been added. This led to an increase in the quality of signals for opening trade orders.
After installation on the chart, two lines will appear in the indicator window. One of them (red) is RSI, the other (green) is sma (simple moving average). Besides, there are two levels: 0.23 and minus 0.23. They are zone boundaries that indicate overbought and oversold.
Parameters, which are set by default, are intended for trading in dollar/yen pairs. Other pairs will need to adjust their settings.
Half of the parameters are related to visualization and alarm notification.
The following parameters can be referred to as important variables:
RSX period – period of the main line;
MA period – period sma;
Level up and Level down – these are the values that determine the overbought and oversold zones.
RSX indicator displays a signal arrow on the chart. If desired, it can be disabled using the Arrows visible.
If we see that the line, colored green,
crosses a line painted red from top to bottom and it happens in the zone
above the level of 0.23, then we can consider sales.
If the line, colored green, crosses the line,
colored red and does so in an area below minus 0.23, it is possible
to consider purchases.
Samples of signals:
Benefits and disadvantages of RSX
The main advantage of this indicator is the absence of redrawing. Besides, I’d note the ease of use. This tool for market analysis is suitable even for beginner traders with minimal trading experience. Thanks to flexible settings, the RSX indicator can be used on different trading instruments and timeframes. You can use the tester to select the parameters.
The last advantage is also a disadvantage.
When switching to another currency pair or TF, you need to change the parameters. And this one…
I would like to conclude by saying that I do not recommend trading only on this indicator signals. To filter false signals, we need to choose another theanalysis tool.