RSI Trend Catcher Signal Indicator

RSI Trend Catcher Signal Indicator

The RSI trend catcher tells you where the trend is moving next.

The RSI Trend Catcher Signal is an easy-to-follow mt4 indicator that works like the traditional RSI. The RSI Trend Catcher plots a signal line similar to RSI but with some alterations.

The indicator tells you overbought oversold areas and presents buying and selling opportunities. In addition, it catches the bullish and bearish divergences and locate trends better than the traditional RSI indicator.

The RSI trend catcher consists of three colors; red, green, and yellow, with each color having different properties. The red color suggests a selling trend, a green color marks a buying trend, and the yellow color defines a trading range.

How to trade the RSI Trend Catcher Signal indicator?
As mentioned earlier, this indicator paints red or green lines to tell the direction of the trend. To apply the indicator, you need to remember the RSI traditional settings.

When the RSI is below 30, it is in oversold territory and presents a good buy opportunity. On the flip side, when the RSI is above 70, it is in the overbought zone and repaints a good selling opportunity.

If the indicator shows a red color, this means the RSI is below 30 levels, and you should enter short positions. On the other hand, if the indicator shows a green line, it’s a buy signal, and the RSI is above 70.

This indicator also alerts the current state of the trend on the chart. The indicator plots the buy or sell signal on the top left corner of the chart.

Let’s find out the buy and sell strategy for the indicator:

RSI Trend Catcher Signal Indicator buy strategy
The indicator must show a green line.
Wait for the green line to fully develop.
Enter when the red line changes to the green line.
Place a stop-loss near the low of a buying point.
Exit when the RSI line changes color.

Indicator sell strategy
The indicator must show a red line.
Wait for the red line to fully develop.
Enter when the green line changes to the red line.
Place a stop-loss near the high of a selling point.
Exit when the RSI line changes color.

Conclusion
The RSI Trend Catcher Signal indicator works like a usual RSI with some changes. The indicator is a great detector of a trend continuation or a reversal, and you can use it on any timeframe.