The Schaff trend RSX Histo indicator is a trading algorithm, the calculations of which consist of the use of several indicators, the effectiveness of which has been proven over time. The indicator is used in trading to identify the direction of the current trend and open trades during this period. The indicator is presented in the lower window of the price chart in the form of a histogram, which changes its color under certain market conditions. Taking into account the values of the indicator that determines the current trend, a certain trade can be opened.
The Schaff trend RSX Histo indicator is suitable for trading on any timeframe, using any currency pairs.The indicator is also suitable for trading in multi-timeframe mode.
The settings of the Schaff trend RSX Histo indicator consist of several sections. To change the parameters of technical work, the Input Parameters section is used, the Colors section is used to change the general visualization, and the Levels section is used to add signal levels to the indicator window.
-Time frame to use - parameter for using the trading time frame. The default value is current.
-Fast ma period - period of the fast moving average of the indicator. The default value is 23.
-Slow ma period - the period of the slow moving average. The default value is 50.
-Price to use calculation - the type of price to which the indicator calculations are applied. The default value is Close.
-RSX calculation period - period of the RSX indicator. Default value is 9.
-Turn alerts on - parameter for the presence of notifications when a signal is received. The default value is false.
-Alerts on still opened bar - signal parameter on the current open bar. Default value is true.
-Alerts should show popup message - parameter for receiving a signal in a pop-up window. Default value is true.
-Alerts should play a sound - parameter of the sound notification when a signal is received. The default value is false.
-Alerts should send email - parameter for sending an email when receiving a signal from the indicator. The default value is false.
-Alerts should send notification - parameter for sending notifications to a mobile device when a signal is received. The default value is false.
-Interpolate - parameter for using the indicator in multi-template mode. Default value is true.
The Schaff trend RSX Histo indicator is very easy to use since the algorithm for its application is similar to other histogram indicators. To open a specific trade, it should be taken into account the direction of the current trend, which is determined by taking into account the color of the histogram columns. If the current market trend is upward, buy trades are opened, if the trend is downward, sell trades. When the current trend changes, in both cases the trades are closed.
Signal for Buy trades:
- The histogram bars are colored with the growth value.
Upon receipt of such conditions, a buy trade may be opened on the signal candle, due to the presence of an uptrend in the current market. At the moment of its change, namely, upon receipt of opposite conditions from the indicator, the current trade should be closed and consider opening a new one.
Signal for Sell trades:
- The indicator histogram is colored with the fall value.
A sell trade caused by the presence of a downward trend can be opened immediately upon receipt of such conditions on the signal candle. At the moment the opposite conditions are received, the trade should be closed. At this moment, a change in trend is possible, which will allow consider opening new trades.
The Schaff trend RSX Histo indicator is a very powerful trading system since its calculations are based on indicators whose effectiveness has been proven over time. Despite the fact that the indicator is very easy to use, practice on a demo account is recommended before using it on a real deposit.