The BB Stops RSI Super Smooth indicator is a trading algorithm whose calculations are based on the interaction of standard Bollinger Bands RSI forex indicators using an additional filter. Its calculations are used in trading to determine the current trend, namely its direction and strength in the current market, which in in turn, it also determines the moment of opening a trade. The indicator is presented in the lower window of the price chart in the form of two lines: the main and the signal, which intersect each other and change color and direction. The current values of the indicator determine the current trend, and at the same time the moment of opening a trade.
The BB Stops RSI Super Smooth indicator is suitable for trading on any timeframe, with any currency pairs.
There are several sections in the settings of the BB Stops RSI Super Smooth indicator, each of which is responsible for the overall functioning of the indicator. The Input Parameters section is responsible for its technical work, the Colors section is used to change visualization parameters, and to add signal levels to the indicator window, the Levels section.
-Rsi period - calculation period of the RSI indicator. The default value is 10.
-Rsi type - type of use of the version of the RSI indicator. The default value is RSX.
-Rsi price to use - the type of price to which the RSI indicator calculations are applied. The default value is Close.
-Super smoothing period - smoothing period for indicator calculations. The default value is 20.
-Bands period - period of the Bollinger Bands indicator. The default value is 20.
-Band average type - the type of smoothing of the Bollinger Bands indicator. The default is Simple moving average.
-Bands deviation - the current deviation of the values of the Bollinger Bands indicator from the standard. The default value is 1.0.
-Bands deviation with sample correction? - parameter to use correction when the indicator deviates. The default value is false.
-Bands risk - the value of the risk included in the calculation. The default value is 1.0.
-Upper band dot size - indicator dot size with growth value. Default value is 1.
-Upper band dot color - the color of the dot with the growth value. The default value is Green.
-Lower band dot size - the size of the dot formed at the lower border of the indicator. The default value is 1.
-Lower band dot color - the color of the indicator dot with the fall value. The default value is Red.
The BB Stops RSI Super Smooth indicator is easy to use due to its convenient visualization. To open a certain trade, it should be taken into account the direction of the current trend, for this, in turn, the direction, color and intersection of its lines are taken into account. After determining the trend, the market is entered taking into account the formed BB points. If the current trend is upward, buy trades are opened, if the trend is downward, sell trades. In both cases, when the trend changes, trades are closed.
Signal for Buy trades:
- The indicator lines have a color with a growth value and are directed upwards. At the same time, the RSI line is above the BB line, at the base of which there is a point with a growth value.
Upon receipt of such conditions that characterize the presence of an uptrend, a buy trade can be opened on the signal candle. The current trade should be closed and new ones should be considered when the trend changes, namely, upon receipt of reverse conditions from the indicator.
Signal for Sell trades:
- Indicator lines intersect so that the BB line with a dot with a fall value is above the RSI line. Both lines have a color with a fall value and are directed down.
A sell trade, due to the presence of a downtrend, can be opened immediately upon receipt of such conditions on a signal candle. When the trend changes, namely when the opposite conditions are received, the trade should be closed and a new one should be considered.
BB Stops RSI Super Smooth is a very powerful trading algorithm based on effective time-tested trading indicators. To get the necessary practice and trading skills, it is recommended to use the indicator on a demo account.