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The RSI Arrow Out of zone iMA Trend indicator is a concept based on the interaction of the RSI indicators as the main one, and the MA Trend indicator as an additional filter. After determining the signal by the RSI line, the moving average confirms and filters it. Then, at the place where the signal was received, an arrow of a certain color and direction is formed. Trading using the indicator can be made on any timeframe, using any currency pairs.
Input parameters
The RSI Arrow Out of zone iMA Trend indicator has quite advanced parameters related to both the RSI indicator and the MA Trend, as well as to setting the indicator arrows. Correct setting of the parameters will help to more accurately adjust the indicator to the selected currency pair and timeframe.
MA Trend
- -Averaging Period - the value of the period of the moving indicator that performs the calculations. The default value is 200.
- -Horizontal Shift-horizontal deviation of the moving average. The default value is 0.
- -Smoothing Type - moving average smoothing type. The default value is Simple.
- -Type of price - type of price to which the moving average calculations will be applied. The default value is Close price.
RSI
- -Averaging Period - the number of bars to which the calculation of the RSI indicator line will be applied. The default is 14.
- -Type of price - price type for RSI indicator calculations. Close price by default.
- -Value Level Down - the value of the lower level of the RSI indicator. The default value is 35.
- -Value Level Up - the value of the upper level of the RSI indicator. The default value is 65.
Arrows
- -Arrow code for Oversold (font Windings) - arrow code with oversold value. Default value is 233.
- -Arrow code for Overbought (font Windings) - arrow code with overbought value. Default value is
- -Vertical shift of arrows in pixels - vertical deviation of the indicator arrows from the price chart. The default value is 10.
Indicator signals
Like all similar arrow indicators, RSI Arrow Out of zone iMA Trend generates a signal to open positions after an arrow appears above or below a certain bar. Depending on the color of the arrow, the direction of the trade will be determined. But before an arrow is formed on a certain bar, it should be borne in mind that the RSI and MA Trend indicators must meet certain conditions. For example, when an arrow with a growth value is formed, the RSI indicator line should not cross the overbought level, and if the arrow with a falling value, the oversold zone .While, with an uptrend, the MA Trend line moves up, and with a downtrend, it moves down.
Signal for Buy trades:
- -Under a certain bar, an arrow with a growth value has formed, that is, directed upwards.
After the appearance of an arrow with a growth value on the current candle, before the appearance of an arrow with a fall value, a long position can be opened.
Signal for Sell trades:
- - An arrow with a drop value has formed above the candles, moving downwards.
After the appearance of this signal on the current candle, a short position is opened, which should be closed when an arrow with a growth value appears on the chart.
Conclusion
RSI Arrow Out of zone iMA Trend is based on the functioning of two indicators, so it is assumed that the indicator is very accurate. However, this is not always the case, therefore, in addition to practice on a demo account, it will be needed to use additional technical indicators that most accurately indicate the point of opening positions.
