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Rsi Macd Warden

RSI.MACD Warden is an innovative indicator for MetaTrader 4 running a versatile algorithm aimed at identifying RSI, MACD and Stochastic divergences. This indicator looks back for a set number of bars and draws lines when a normal or hidden divergence is identified. The smaller the lookback period the faster is the indicator. A divergence line is plotted on the chart when an RSI divergence between A and B points is also confirmed by MACD and Stochastic divergences between the same points on the chart.

The indicator keeps lines of divergences within the set number of lookback period bars only. The divergences beyond the lookback period are not visible on the chart. The indicator can identify both NORMAL and HIDDEN divergences. The indicator is more accurate in identifying NORMAL divergences.

A great number of tests have been carried out to improve the indicator’s performance. A trading robot was developed to find the best input settings for each time frame and currency pair. Intensive optimization tests have been run on AWS high capacity computing machines. The trading robot showed stunning results for EURUSD M5 timeframe for the period of 1 April 2017 - 15 May 2017. Please see screenshots attached. The trading robot is assumed to provide trading signals as a stand-alone product.

Traders are advised to test the indicator before buying. You should also carry out individual tests for each time frame of a chosen currency pair.


Key features

  • NORMAL and HIDDEN divergences.
  • High accuracy of signals if a correct set of inputs is applied.
  • Flexible and adaptive to various trading conditions.
  • The indicator doesn’t wait for a confirmation bar to trigger a signal. A trader should make trading decisions for every signal individually.
  • Lines are drawn both on the chart and the indicator windows for a set in inputs number of bars. The indicators on the chart must have the same settings you have in RSI.MACD Warden to draw divergence lines correctly.
  • Turn MACD and Stochastic filters ON/OFF. A signal is triggered when an RSI divergence is confirmed by a respective MACD and/or Stochastic divergence.
  • Inbuilt filters reduce the number of false signals. Tweaking the filters will let you set a specific pattern with high probability of winning trades.
  • Push/Email/Terminal alerts. This option is convenient if your run a VPS and want to receive signals on your mobile 24/5.
  • The indicator works with virtually all trading instruments.


Inputs

Please note that for every time frame and currency pair input settings can be different to achieve higher accuracy of signals.

A good level of knowledge of RSI, MACD and Stochastic indicators is required to tune up the indicator for each time frame and currency pair individually.

  • Lookback bars - number of bars to the left from the current bar to look for divergences
  • RSI - settings
  • MACD - settings
  • Stochastics - settings
  • Settings for filters to tune up the indicator for high accuracy signals.
  • 1 Point = 1/10 of a pip in a pair.

Your feedback is much appreciated to improve the indicator's performance. We are already working on further updates.


Risk warning

**Trading foreign currencies can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose. The possibility exists that you could sustain a loss in excess of your initial investment. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Nothing in this product, including but not limited to our other copyrighted software products, is intended to be nor should it be understood by you as being investment advice from or by us.

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