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An mt4 technical forex indicator that displays overbought and oversold circumstances on the chart is the RSI paint indicator. On the chart, it also provides real-time forex divergence.
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The RSI paint forex indicator’s operation
Forex traders use the RSI Paint indicator to spot oversold and overbought situations. Additionally, it plots the forex divergence lines on the mt4 chart at lower lows or higher highs.
How does the RSI divergence in the forex indicator get identified?
This forex indicator draws a divergence line in oversold or overbought conditions using the lower low and higher high values of the price chart and forex indicator.
Only overbought and oversold conditions will trigger the detection of a bullish chart trend reversal and a bearish chart trend reversal, respectively. It is crucial in identifying the conditions of a chart reversal because of this.
Red and green color lines are drawn by the RSI Paint MT4 forex indicator depending on the situation.
Forex Rsi paint divergence on the downside
When the forex indicator makes a higher low while the price on the mt4 chart forms lower lows, the forex indicator displays a red line. A bearish chart trend reversal is another name for it. The negative trend changes to a bullish trend following this chart divergence.
Positivistic Rsi paint 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. It is also known as a reversal of the bullish trend. Following the formation of this green line, the price trend shifts from bullish to bearish.
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RSI paint indicator signals
A bullish or bearish arrow is drawn by this indicator. The arrow also displays buy and sell indications.
When to buy
When the indicator produces a green color line with a bullish green arrow, a purchase signal is produced. As a result, you should buy as soon as a green arrow appears.
When to sell
When the indicator forms a red color line with a bearish red arrow, a sell signal is produced. As a result, you should sell as soon as a green arrow appears.
Conclusion
A forex indicator used to determine whether a price is overbought or oversold is the relative strength index. If you just made purchases when the price was oversold, it would assist.
To improve a trading system’s winning percentage, combine this RSI paint indicator with any other price action strategy.
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