The RSI VAR HULL indicator is a small strategy that includes effective forex indicators. Their joint calculations create an algorithm that is used in trading to identify the current trend, that is, its direction and strength, as well as opening trades during this period. The indicator can also be used to determine when the market is in the overbought or oversold zone. It is represented in the lower window of the price chart as a solid line with a signal level, which changes direction and color under certain market conditions. The current values of the line are taken into account at the time of trading.
The RSI VAR HULL indicator works equally effectively on all timeframes using any currency pairs.
The RSI VAR HULL indicator settings consist of several sections. The Input Parameters section is used to change the values of its technical work, the Colors section is used to change its visualization, and the Levels section is used to add signal levels to the indicator window.
-RSI period - indicator calculation period. The default value is 50.
-Price smoothing period (<1 for no smoothing) - price smoothing period of the indicator. The default value is 14. When using a value greater than 1, smoothing is not applied at all.
-Hull divisor - a value of the divisor of indicator values. The default value is 1.5.
-Price - a type of the price to which the indicator calculations are applied. By default, it has the Close price value.
The RSI VAR HULL indicator is very easy to use. To open a specific trade using the indicator, it should be taken into account the direction of the current trend, namely the direction and color of the indicator line. If the current trend is up, buy trades are opened, if the trend is down, short positions. When the current trend changes, in both cases, trades are closed.
Signal for Buy trades:
- The indicator line is directed upwards and rises above level 50, it is colored in color with the growth value.
Upon receipt of such conditions, a buy trade can be opened on the signal candle. At this moment, an uptrend is determined in the market. It should be closed when the trend changes, namely when the opposite conditions are received from the indicator. At this moment, it can be considered opening new trades.
Signal for Sell trades:
- The indicator line is directed down and falls below the level of 50, and is also colored in color with the fall value.
A sell trade can be opened immediately upon receipt of conditions that characterize the presence of a downtrend. Close the current trade and consider opening a new one should be upon receipt of the opposite conditions from the indicator, that is when the current trend changes.
The RSI VAR HULL indicator is a very effective trading system. To get more effective signals, it is recommended to use the indicator with additional indicators, advisors and filters. Before using the indicator on a real deposit, it is recommended to use a demo account.