Forex Tipu RSI MT4 is another fantastic indicator from Tipu archive. Forex Tipu RSI indicator is very simple and very effective technical indicator so I love this indicator. However this indicator alone may not be enough to make trading decisions as it is concerned with overbought, oversold, and momentum of the market trend.
Forex Tipu RSI will tell you when the market is overbought and when the market is oversold. But it may not tell when to buy and when to sell. But it is common knowledge that once when looking for buying opportunities at oversold territories and vice versa.
Forex Tipu RSI MT4 Indicator Overview
When you install Forex Tipu RSI MT4 Indicator in your trading platform, your chart should look like this:
Forex Tipu RSI MT4 Anatomy
This forex trading indicator is a modified form of a classic RSI indicator. It has been modified to make its use easier and effective. When the RSI is overbought it turns orange and when the RSI is oversold it turns blue. You should find a trending market and trade accordingly as per indicated by this indicator.
Forex Tipu RSI MT4: Buy Parameters
1) Wait for RSI to come to oversold territory.
2) You can use other trend indicators like- moving averages, and parabolic SAR for confirming up trend.
3) When market starts to bounce you can start buying.
4) Stop loss should be kept below the recent major support.
5) You should book your profit when the Tipu RSI MT4 indicator goes to overbought territory.
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Forex Tipu RSI MT4: Sell Parameters
1) Wait for RSI to come to overbought territory.
2) You can use other trend indicators like- moving averages, and parabolic SAR for confirming down trend.
3) When market starts to fall you can start selling.
4) Stop loss should be kept above the recent major resistance.
5) You should book your profit when the Tipu RSI MT4 indicator goes to oversold territory.