RSI paint Forex 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.
You can use forex divergence to detect reversals on the chart.
Working of RSI paint forex indicator
RSI paint forex indicator is used to identify oversold and overbought conditions. It also draws the forex divergence lines on lower lows or higher highs on the mt4 chart.
How does the forex indicator Identify the RSI divergence?
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 forex Rsi paint divergence
If the price on the mt4 chart forms lower lows, but the forex indicator creates a higher low, then the forex indicator draws a red color line. It is also called a bearish chart trend reversal. After this chart divergence, the bearish trend is converted into a bullish trend.
Bullish Rsi paint divergence
If the price forms higher highs on the chart and the indicator includes a lower high, then the indicator draws a green line. It is also called a bullish trend reversal. The price trend changes from bullish to bearish after forming this green line.
RSI paint indicator signals
This indicator draws a Bearish or bullish arrow. In addition, the arrow shows the buy or sell signals.
When to buy
A buy signal is generated when the indicator draws a green color line with a bullish green arrow. Therefore, you should buy just after the formation of a green arrow.
When to sell
A sell signal is generated when the indicator draws a red color line with a bearish red arrow. Therefore, you should sell just after the formation of a green arrow.
The relative strength index is a forex indicator representing whether the price is overbought or oversold. It would help if you only bought when the price is oversold.
You can also add a confluence of this RSI paint indicator with any other price action technique to increase the winning ratio of a trading system.