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Sunday, 02 October 2022
rsi-fwa-divergence-indicator
rsi-fwa-divergence-indicator

rsi-fwa-divergence-indicator

Watch the testing video here:

RSI FWA Divergence Indicator

 

Introduction to the RSI FWA Divergence Indicator

The RSI FWA Divergence indicator scans and displays divergences between price and the RSI indicator.

That gauge is capable of recognizing both bullish and bearish divergences. You can successfully utilize low-risk trend reversal trading in both bullish and bearish markets.

It is a pretty versatile tool as it fits best for scalping, day trading, and swing trading.

It fits all kinds of timeframes and currency pairs.

The indicator is displayed in a separate window placed just below the main trading chart.

The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

Signals provided by the RSI FWA Divergence Indicator are really intuitive and will not cause you difficulties. Simply follow the suggestions below.

Buy Entry: A buy entry point (long trade) occurs when the RSI FWA Divergence indicator provides recognized bullish divergence below the 50 level. You will see a divergence line drawn in conjunction with check marks. Place your stop loss a few pips below the last swing low.

Sell Entry: A sell entry point (short trade) occurs when the RSI FWA Divergence indicator provides recognized bearish divergence above the 50 level. You will see a divergence line drawn in conjunction with check marks. Place your stop loss a few pips above the swing high.

Exit Trade / Take Profit: Close your open position when the RSI reaches 70 level for buy or 30 level for sell, or use your own preferred method of trade exit.

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

 

How to set up the RSI FWA Divergence indicator in MT4?

Installation Guide

Copy and paste the RSI_FWA.ex4 or RSI_FWA.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

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