Strength Index is a great tool for finding low risk and high reward entries. Strength Index helps traders to determine if the market is overbought or oversold. When the index is above 90, the market is overbought. When the index is below 90, the market is oversold. The option "Highlight lines" will help you spot overbought and oversold zones easily.
Please remember that the market can be oversold and overbought for a long period. Do not use highlighted lines to make entries. Instead, wait for the green/red line to turn white. This will save you from entering too early. However, you may enter the market when the highlighted lines appears in the direction of the trend. (For example, if the trend is up and the index is below 10, you may go long.)
I would highly recommend testing the indicator in demo before purchasing. Try out the demo for free!
This indicator has an experimental option called "Trend Recommendation" which can help filter out bad signals. Enabling this option will show you the direction of the trade and if its a pullback.
- When the trend recommendation line is light green, it means the market is trending up. When the trend recommendation line is dark green, the trend is still up, however the market might be going through a pullback or reversal.
- When the trend recommendation line is light red, it means the market is trending down. When the trend recommendation line is dark red, the trend is still down, however, the market might be going through a pullback or reversal.
The "Show Trend Recommendation Text" option will show the current status of "Trend Recommendation" in the form of text. This is extremely helpful for traders as it helps them recognize the status of the current market with ease.
Trend Recommendation mode is still experimental. We will be providing updates and tweaking it regularly to make it better and more accurate. You can also trade and improve your accuracy by using this indicator for multi timeframe analysis.
- SI_Period: The number of bars used for the Strength Index calculations. (Must be above 0)
- S_Period: The number of index values used for smoothing. (Must be above 1)
- SI_Method: Method of smoothing.
- HighlightLines: Highlights line when index is above upper Level and below lower Level
- UpperLevel: Index level where market is considered overbought.
- LowerLevel: Index level where market is considered oversold.
- TrendRecommendation: When enabled, it will show trend status in the lower part of indicator. Light Green/Red means market is in strong uptrend/downtrend. Dark Green/Red means the market is either having pullback or going through reversal.
- ShowTrendRecommendationText: Shows current trend recommendation in the form of text.
- txt_XDistance: X coordinate for Trend recommendation Text. (In pixel)
- txt_YDistance: Y coordinate for Trend recommendation Text. (In pixel)
- txt_Corner: Corner where Trend recommendation text should be displayed.
- txt_color_up: Color of Trend recommendation text when the trend is up.
- txt_color_down: Color of Trend recommendation text when the trend is down.