Metro Indicator is a trend-following treading tool that uses three different RSI lines to measure momentum and identify potential trend reversals. Works on all timeframes.
Metro Indicator Overview
The Metro Indicator is a momentum oscillator that utilizes three Relative Strength Index (RSI) lines to determine the direction of the trend.
Traders can use the Metro Indicator to trade crossovers, where they take long positions when the fast RSI crosses above the slow RSI, or short positions when the slow RSI crosses above the fast RSI.
This Indicator can be used to trade crossovers or overbought/oversold levels. It works on all timeframes, but it’s best used on longer timeframes to reduce noise.
Metro Indicator Explanation
The Metro Indicator is unique in that it utilizes three different RSI lines. The main RSI line is calculated based on moving average calculations, while the fast and slow RSIs complement the main line and provide additional signals when crossovers occur.
It works by analyzing the price action of an asset and comparing it to historical data to identify overbought and oversold conditions.
When the indicator reaches near the 80 levels, it signals an overbought condition, which indicates a potential downtrend.
Conversely, when it approaches the 20 levels, it signals an oversold condition, which suggests a potential uptrend.
Traders can use the Metro Indicator to identify potential trading opportunities, but it should be used in conjunction with other technical analysis tools and risk management techniques to confirm trading decisions and reduce potential losses.
Metro Indicator: Buy Conditions
- The fast RSI line should cross above the slow RSI line
- All three RSI lines should be close to the 20 level
- Wait for price action to confirm the bullish signal
Also read: Hurst Exponent Indicator
Metro Indicator: Sell Conditions
- The fast RSI line must cross the slow RSI line.
- The 80 levels should be reached by all three RSI lines.
- Observe price movement for confirmation of the negative indication.