JMA RSX Indicator is an alternative version of the most popular indicator “Relative Strength Index”, used to identify the overbought and oversold conditions of the market.
You can apply JMA RSX for both swing trading and trend-based trading purposes. This indicator also supports trading in all sorts of timeframe charts and allows both scalping and daily tradings.
JMA RSX Indicator can be applied to trade all kinds of forex currency pairs available in the financial markets. Besides, its simplicity of use offers an extra advantage for the newbie traders who struggles in the live markets to be a consistent trader.
JMA RSX Indicator Overview
Download and install the indicator on your MT4 platform. Once you’re done, find your trading chart like the image below:
JMA RSX Indicator Explanation
JMA RSX Indicator applies a 14-day median average system for determining the overbought or oversold areas of the market. It has been observed that price often uses such areas as potential swing levels of a market trend.
A trendline is broken from such swing areas is considered a possible trend reversal. JMARSX value drops near its 30-level means the market is in an oversold condition.
On the other hand, the indicator value rises up to its 70 level means the market is in an overbought condition. JMA RSX value at 50 means the market trend is in a neutral condition which can also be interpreted as a “no trade” condition.
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JMA RSX: Buy Condition
- JMA RSX value bounces upwards from its 30 level
- A bullish candle is plotted at the same time
- Buy triggers after the above conditions are met
- Set stop loss below the nearest low of the market
- Exit long/take profit whenever the indicator value starts to fall from its 70 level
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JMA RSX: Sell Condition
- JMA RSX value bounces downwards from its 70 level
- A bearish candle is plotted at the same time
- Sell triggers after the above conditions are met
- Set stop loss above the nearest high of the market
- Exit long/take profit whenever the indicator value starts to rise from its 30 level