RSI Trend Line Alert Indicator

It is the RSI Trend Catcher. Signal is a simple-to-follow indicator in MT4 that functions as the standard RSI. Its RSI Trend Catcher shows the same signal line as RSI; however, it has some modifications.

The indicator identifies overbought areas that are oversold and offers the possibility of buying or selling. It also identifies the divergences between bearish and bullish and detects trends more effectively than the standard RSI indicator.

The RSI trend catcher comprises three colors: red, yellow, and green, each with distinct characteristics. The red color signifies the selling trend, whereas green colors indicate a buying trend, and the yellow color indicates the trading range.

How do I make money trading the Trend Catcher Signal indicator?

As we mentioned previously, the indicator draws either green or red lines to indicate what direction trends are heading. In order to apply this indicator, you will need to keep in mind the RSI conventional setting.

If the RSI is lower than 30, it is in the oversold area and is an opportunity to buy. On the other hand, if the RSI is higher than 70, it’s in an overbought area and offers a great selling opportunity.

If the indicator displays the color red, it indicates that the RSI is lower than 30 and you should be entering short positions. In contrast, if the indicator displays green lines, it is an indication to buy, as the RSI is higher than 70.

This indicator also indicates the current state in the direction of the trend that is displayed on the chart. The indicator displays the signal to buy or sell in the upper left edge of the chart.

Let’s discover how to buy or sell strategies for the indicator:

RSI Trend Catcher Signal Indicator: Buy Strategy

• The indicator must display the green line.
• Be patient and wait for the green line to fully grow.
• Enter when the red line turns to green.
• Set a stop-loss close to the lowest of the buying points.
• Exit at the point where you see that the RSI lines change color.

Conclusion

It is the RSI trend catcher indicator, which functions as an ordinary RSI with a few changes. It is a fantastic indicator of a trend that is either continuing or reversing. It can be used with any timeframe.