RSI Cbot strategy
The "Sample RSI Range Robot" will create a buy order when the Relative Strength Index indicator crosses the level 30,
and a Sell order when the RSI indicator crosses the level 70. The order is closed be either a Stop Loss, defined in
the "Stop Loss" parameter, or by the opposite RSI crossing signal (buy orders close when RSI crosses the 70 level
and sell orders are closed when RSI crosses the 30 level).The robot can generate only one Buy or Sell order at any given time.
What is the RSI
The Relative Strength Index (RSI), is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.
How this indicator works
- RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80.
- RSI also often forms chart patterns that may not show on the underlying price chart, such as double tops and bottoms and trend lines. Also, look for support or resistance on the RSI.
- In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with the 40-50 zone acting as support. During a downtrend or bear market the RSI tends to stay between the 10 to 60 range with the 50-60 zone acting as resistance. These ranges will vary depending on the RSI settings and the strength of the security’s or market’s underlying trend.
- If underlying prices make a new high or low that isn't confirmed by the RSI, this divergence can signal a price reversal. If the RSI makes a lower high and then follows with a downside move below a previous low, a Top Swing Failure has occurred. If the RSI makes a higher low and then follows with an upside move above a previous high, a Bottom Swing Failure has occurred.
How to install
How To Install the indicator:
- Make sure you have the cTrader trading platform
installed and then simply double-click on the file to install it.How to open:
- Left click on any chart to show the indicator menu.
- Go to the search bar and type in the name of the file.Instant chat support
- Every product on the website comes with additional customer
support,that covers setting up and using the indicator.