Corrected RSX Indicator

Corrected RSX Indicator

Corrected RSX is a suitable indicator for trading with the trend. The Corrected RSX indicator provides traders with ideal trade entry points. Perfect trend reversal detector.

The Corrected RSX indicator determines the market dynamics and price features by converting the accumulated market history data. This improved version of RSI eliminates market noise to prevent false market signals, hence more accurate signals. The best part is that the indicator can be smoothed without lag.

The indicator window is formed under the market chart and shows the overbought and oversold zones. It also consists of a moving average line representing market movement that changes color from light green to pale purple. The RSX also has a wide line bar at zero that changes color to red, green and yellow. Yellow means market decision. You can use the indicator for day trading, scalping and swing trading.

How to use the adjusted RSX indicator?
The indicator values ​​start from 0 to one hundred. When the indicator line falls below level 20, it is an oversold zone, and above 80, it is an overbought zone.

Buy signal
A buy signal occurs when the RSX dotted line indicator line turns blue and moves up crosses the Corrected RSX line. Also, if the price is in the oversold zone, this is a clear sign that it is ripe for a trend reversal and you are ready to go long.

Sell signal
The dotted RSX line is moving in a downtrend and changing color to orange. If the price is in the oversold zone, this is a clear sign of an impending trend reversal.

Exit strategy
Get out if the indicator turns orange during an uptrend or when the indicator turns blue during a bear market.

Can I install custom indicators in MT5?
RSX is not among the default indicators on MT5. But you can download it for free on our website. After downloading, copy the indicator file to the MQL5 indicator folder of the MT5 trading platform.

Trading example

The weight of the indicator is shown higher in the British pound against the US dollar. When the RSX line changes its color to blue, the price slightly moves upward, which indicates a buy signal. Exit your trade, when the RSX line changes color to orange and corresponds to the downward direction of the market.

Similarly, the indicator colors the indicator line orange, indicating the ideal time to enter a short position. Notice how the moving average changes color to pale purple and mimics a downtrend in the market. This is the perfect sell signal.

Conclusion
The Corrected RSX indicator provides traders with ideal trade entry points. This means that you can identify ideal places to enter and exit trades. The trade comes with a moving average that depicts price movement and changes color to blue in an uptrend and orange in a downtrend. The indicator line in the center confirms the signal, making the indicator an ideal tool for getting accurate signals. It is ideal to trade with the trend and get the maximum profit.