RSI Filter is a forex trading indicator. This forex trading indicator is very simple trading indicator. However, the indicator is so simple that you need another indicator to support this indicator. RSI filter alone is not enough to make trading decisions for you but this indicator will tell you lot about the movements of the market. You can know a lot about the direction of the market by this indicator. The RSI Filter indicator might not be suitable for using as a trade signal generator but it can be used as a confirmation tool. If you have your own trading strategy you can put this indicator to check if your trades are valid.
When you install RSI Filter in your trading platform, your chart should look like this:
- RSI Filter
RSI Filter is a technical indicator which consists of red and blue bars. When the bars are in positive territory it’s blue and when the bars are in negative territory bars are red. Therefore, you should be buying only when the bars are positive or blue similarly you should be selling only when the bars are in negative territory or red.
Buying Conditions Using RSI Filter.
- Market should be up trending.
- The RSI Filter indicator should form blue bars.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the RSI Filter bars form red bars.
Selling Conditions Using RSI Filter.
- Market should be down trending.
- The RSI Filter indicator should form red bars.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the RSI Filter bars form blue bars.
Download Free Forex Advanced RSI Filter Indicator
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