R4M RSX Exit Indicator (R4M-RsxExit.ex4)
The RSX Exit indicator is based on the RSX indicator I found here:
https://www.mql5.com/en/code/7204
RSX (and R4M-RsxExit) are variations of RSI -- which is intended to detect when a currency is overbought or oversold. It is easy to implement and when used as a signal to Exit it seems to be fairly accurate. I will be using this algorithm as the Exit condition in SpikeHunter.
In the screen shot above I've cherry-picked a trade to show how I intend to use this indicator inside SpikeHunter. The purple dot (and blue vertical line) mark a SELL Entry. The red vertical line shows where the slope of the RSX indicator is '0', indicating that oversold has exhausted and the price will likely go up again.
A word about using TakeProfit versus using an Exit condition...
TakeProfit is convenient because it is handled by your broker. All you need to do is press a BUY/SELL button and you can then walk away or even turn off your computer. However, the down-side to TP is that if the signal is a false positive then it will probably be your SL that closes the trade. Using an Exit condition softens the blow of a false positive. It also may allow a true signal to run longer than if you had used a fixed TP. The down-side to using an Exit condition is that the indicator (or EA) must continuously monitor the broker data for the pair / TF used to open a trade -- i.e. it must always be attached to the same chart the trade was opened on. If you were to switch to a different pair or TF then the indicator (or EA) would be monitoring the wrong data.
The RSX Exit indicator is based on the RSX indicator I found here:
https://www.mql5.com/en/code/7204
RSX (and R4M-RsxExit) are variations of RSI -- which is intended to detect when a currency is overbought or oversold. It is easy to implement and when used as a signal to Exit it seems to be fairly accurate. I will be using this algorithm as the Exit condition in SpikeHunter.
In the screen shot above I've cherry-picked a trade to show how I intend to use this indicator inside SpikeHunter. The purple dot (and blue vertical line) mark a SELL Entry. The red vertical line shows where the slope of the RSX indicator is '0', indicating that oversold has exhausted and the price will likely go up again.
A word about using TakeProfit versus using an Exit condition...
TakeProfit is convenient because it is handled by your broker. All you need to do is press a BUY/SELL button and you can then walk away or even turn off your computer. However, the down-side to TP is that if the signal is a false positive then it will probably be your SL that closes the trade. Using an Exit condition softens the blow of a false positive. It also may allow a true signal to run longer than if you had used a fixed TP. The down-side to using an Exit condition is that the indicator (or EA) must continuously monitor the broker data for the pair / TF used to open a trade -- i.e. it must always be attached to the same chart the trade was opened on. If you were to switch to a different pair or TF then the indicator (or EA) would be monitoring the wrong data.
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