This RSI Trend Catcher Signal is a simple-to-follow indicator in mt4 format that works as the classic RSI. This RSI Trend Catcher plots a signal line that is similar to RSI but with a few modifications.
The indicator identifies overbought areas that are oversold and offers selling and buying opportunities. It also identifies the divergences between bear and bullish and can spot trends better than the standard RSI indicator.
The RSI trend catcher is composed of three shades: green, red, and yellow, each color possessing distinct properties. The red color signifies an underlying selling trend, while green colors indicate the buying trend, while the yellow color indicates the trading range.
How do I trade the the Trend Catcher Signal indicator?
As we mentioned previously the indicator draws green or red lines to show what direction trends are heading. In order to use the indicator, it is necessary to be aware of the RSI conventional setting.
If the RSI is lower than 30, it’s in oversold territory , and is an excellent buy opportunity. On the other hand in the event that RSI is higher than 70, it’s in the overbought region and provides a great selling opportunity.
If the indicator is showing an red hue, this indicates that the RSI is lower than 30 levels which means you need to start short positions. In contrast when the indicator displays green lines that’s an buy signal as the RSI is higher than 70.
The indicator also informs you of to the current state in the direction of trend that is displayed on chart. The indicator displays an indication of the buy selling or buy signal in the left-hand side on the chart.
Let’s discover what is the buy selling and buy strategy of the indicator:
RSI trend catcher signal indicator buy strategy
The indicator should show an green line.
The green line will take a while to fully grow.
Enter at the moment that the red line switches to green.
Set a stop-loss close to the bottom of a purchasing point.
Exit at the point that your RSI lines change color.
It is the RSI Trend Catcher signal indicator operates like an ordinary RSI but with some modifications. It is a fantastic indicator of a trend’s either reversal or continuation and can be used it with any time frame.