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The Aroon oscillator of VHF Adaptive RSI mtf indicator is a trading system that was created using the calculations of several trading algorithms with additional filter. Its calculations are used to determine the presence of a trend and its current direction. It is displayed in the lower window of the price chart as a solid line, which under certain market conditions, it changes its color and direction. The current values of the indicator determine the direction of the current trend, which in turn allows opening a certain trade taking it into account.
The Aroon oscillator of VHF Adaptive RSI mtf indicator is suitable for trading any currency pairs, on any timeframe. Keep in mind that the indicator can be used in multi-timeframe mode.
Input parameters
In the settings of the Aroon oscillator of VHF Adaptive RSI mtf indicator, there are several sections responsible for its general functioning. The Colors section is responsible for its general visualization, the Levels section is for adding signal levels to the indicator window.
-Time frame to use - parameter for using the trading timeframe. The default value is current.
-Rsi Period to use - calculation period of the RSI indicator. The default value is 50.
-Price to use - the type of price to which the indicator calculations are applied. The default value is Close.
-Rsi type - the type of the RSI indicator to use. The default value is RSX.
-Aroon Period to use - the period of the Aroon indicator. The default value is 50.
-Filter - period of calculation filter to apply. Default value is 50.0.
-Interpolate in multi time frame mode - parameter for using the indicator in multi time frame mode. The default value is true.
Indicator signals
The Aroon oscillator of VHF Adaptive RSI mtf indicator is very easy to use due to its visualization. To open a certain trade, it should be taken into account the presence and direction of the current trend using the color and direction of the indicator line, respectively. If the current trend is upward, long positions are opened, if the trend is downward, short positions. At the moment there is no trend in the market, that is, if the indicator line becomes neutral, trades should not be opened.
Signal for Buy trades:
- The indicator line is directed upwards and acquires color with the growth value.
Upon receipt of such conditions on a signal candle, a buy trade can be opened, due to the presence of an uptrend. At the moment of its change, namely, upon receipt of reverse conditions from the indicator, the current trade should be closed and a new one should be considered.
Signal for Sell trades:
- The indicator line moves down and is colored with the fall value.
A sell trade, due to the presence of a downtrend, can be opened immediately upon receipt of such conditions on a signal candle. If the color and direction of the line change, the trade should be closed. At this moment, a change in the current trend is possible, which will allow considering opening new trades.
Conclusion
The Aroon oscillator of VHF Adaptive RSI mtf indicator is a powerful trading system based on the use of standard forex indicators with an additional filter that makes its signals more accurate. Although the indicator is easy to use, it is recommended to practice on a demo account before using it on a real deposit.
