forexshop Forex RSI Paint Indicator is an mt4 technical forex indicator that shows the overbought and oversold conditions on the mt4 chart. It also offers real-time forex divergence on the chart.
Using forex divergence, you can spot chart reversals.
How does it work?
Forex traders use the RSI Paint indicator to spot oversold and overbought situations. It also plots the forex divergence lines on the mt4 chart at lower Lows or higher Highs.
This forex indicator uses the lowers low and higher high values of the price chart and forex indicator to draw a divergence line in oversold or overbought conditions.
It will detect bullish chart trend reversal only in overbought conditions and bearish chart trend reversal only in oversold conditions. That’s why it is essential in determining the chart reversal conditions.
RSI paint mt4 forex indicator draws red and green color lines according to conditions.
Bearish Divergence
The lower low and higher high values of the price chart and forex indicator are used to form a divergence line in oversold or overbought conditions.
A bullish chart trend reversal and a bearish chart trend reversal can only be detected when there are overbought and oversold conditions, respectively. This makes it essential to determine the circumstances around a chart reversal.
Depending on the circumstance, the RSI Paint MT4 forex indicator displays red and green color lines.
Bullish Divergence
The indicator will draw a green line if the price makes greater highs on the chart and the indicator also includes a lower high. Following the formation of this green line, the price trend shifts from bullish to bearish. It is also known as a reversal of the bullish trend.
Forex RSI Paint Indicator Signals
This indicator draws a bullish or bearish arrow. The arrow also displays buy and sell indications.
Buy trade
A purchase signal is produced when the indicator produces a green color line with a bullish green arrow. As a result, you should buy as soon as a green arrow appears.
Sell trade
When the indicator forms a red color line with a bearish red arrow, a sell signal is produced. Therefore, you ought to sell the moment a green arrow emerges.
Conclusion
ConclusionThe relative strength index will show if a price is overbought or oversold. Buying solely when the price is oversold would be beneficial.
The winning percentage of a trading method can be increased by combining this RSI paint indicator with any other price action strategy.
