The RSI STO WPR is a trading indicator, the calculations of which are based on the functioning of the calculations of several forex indicators. Thus, their joint calculations determine information about the current market trend, namely its current direction and strength, which in turn allows determining the moment of opening a trade in this period. It is represented in the lower window of the price chart as a histogram with a signal line and two additional lines above it. The current indicators of the indicator are used to determine the market movement and open certain positions.
The RSI STO WPR indicator is suitable for use on any timeframes, with any currency pairs.
There are several sections in the RSI STO WPR indicator settings, each of which affects the overall functioning of the indicator. The Input Parameters section is responsible for its technical operation, the Colors section for its visualization, and the Levels section for adding signal levels to the indicator window.
-KPeriod - period of the Stochastic signal line of the current price compared to previous values. The default value is 10.
-DPeriod - the value of the period of the moving average line K of the Stochastic indicator. The default value is 6.
-Slowing - the period of slowing down the indicator calculations. The default value is 4.
-MAMode - smoothing type of moving averages used. The default value is 0.
-PriceField - a type of price to which the indicator calculations are applied. The default value is 0.
-ShowSTO - parameter for the presence of Stochastic lines on the chart. The default value is true.
The RSI STO WPR indicator is very easy to use. Keep in mind that all indicator values, namely its OsMa histogram with the Momentum signal line, and the other two lines, namely Stochastic and RSI, are considered separately. To open a specific trade using the indicator, it should be taken into account the direction and strength of the current trend, taking into account the values of the indicator. If the current trend is upward, buy trades are opened, if the trend is downward, sell trades. If the current trend direction changes, the trade is closed in both cases.
Signal for Buy trades:
-The histogram of the indicator with the signal line rises above the 0 level. At the same time, its lines move up and intersect so that the fast line is higher than the slow one.
Upon receipt of a combination of such conditions on a signal candle, a buy trade can be opened, which is determined by the presence of an upward trend in the current market. It should be closed upon receiving a return signal from the indicator. At this moment, a change in the current trend is possible, which in turn will allow considering the opening of new trades.
Signal for Sell trades:
-The indicator lines are crossed so that the line with the growth value is higher than the line with the fall value, while both lines are directed downwards. At this moment, the indicator histogram together with the signal line fall below the 0 level.
A sell trade can be opened upon receipt of such conditions that characterize the presence of a downward trend in the current market. If the opposite conditions are received, the trade should be closed. At this moment, the current trend is expected to change on the market, which in turn will allow considering the opening of new trades.
The RSI STO WPR indicator is a full-fledged trading system, the calculations of which are based on the functioning of the best Forex indicators, the accuracy of which has been proven by time. The indicator is very easy to use, as it can be seen during the preliminary practice period on a demo account.