Indicators Archives - Forex Education

Download MACD Indicator with Two Lines for MT4

February 28, 2020 by Fxigor

MACD Indicator MT4 With Two Lines- Understanding And How To Trade

As you know, the MACD indicator in MetaTrader has only a histogram and one line instead of two lines as we can see in theory. In this article, we will offer you to download the MACD indicator with two lines and we will talk about this indicator.

Please download MACD indicator MetaTrader 4 with two lines: 2 line macd indicator for mt4 free download)

The world of trading has grown exponentially with the advent of the internet and online trading platforms. Nowadays, there are a dizzying amount of indicators, and yet MACD is still one of the popular among experienced traders. In this article, you will learn what the MACD indicator is all about, and how you can trade it or incorporate it into your current trading strategy.

What Is The MACD Indicator

MACD stands for Moving Average Convergence Divergence. It’s generally considered as an indicator belonging to the oscillator family, and it’s been around before the boom of online trading. In fact, this indicator was developed by Gerald Appel during the 1970s.

When you first look at the MACD indicator, it can be confusing. This is understandable as it is usually presented in another window with bars and two lines. Before you can trade the MACD, you will need to learn what those lines and bars represent.

The bars and lines that you see in the MACD indicator are derived from its numerical settings. The “standard” setting is 12,26,9. These numbers are derived from the old days in which trading sessions was six days a week. And, the standard MACD settings represented price movements of one and a half, two and four weeks. These days, typical trading sessions is now five days a week. Hence, it’s possible to adjust the “standard” setting to adapt it to today’s trading environment. And yet, its also possible to use the “standard” settings as its what’s most commonly used by traders, and that’s is usually a good thing in trading. From these settings, the MACD indicator mt4 with two lines and bars are then produced.

First, put your focus on the two lines that typically oscillate within the confines of the indicator window. MACD is basically an EMA with a twist. Plenty of traders use two EMA’s as part of their trading. Usually, there’s the fast one and the slow one. Using two EMAs aims to identify the overall trend better or it may even signal entry or exit.

The MACD builts upon this concept as it still incorporates a slow and fast line. However, it has a unique twist. Do you remember the setting mentioned above (12,26,9)? Well, the fast line is produced by subtracting the 26 EMA with the 12 EMA. For the slow line, it merely uses the value of the 9 EMA.

To produce the bars, take note of the 9 EMA, which is considered as the slow line. Next, observe how the fast line goes up and down the slow line. Imagine that you stretch the 9 EMA into a straight line, and while doing so, the fast line will also ‘contort’ along with it. Then represent that contorted line in the forms of bars, and that’s how you get the iconic MACD bars, or also known as histograms. Now that you understand how the MACD is produced, you have a better way of understanding how to trade with it.

You can read more about the best MACD settings for intraday trading in our article.

Trading With MACD Indicator MT4 With Two Lines

Please download Macd indicator mt4 two lines: macd mt4 2 lines download indicator

This indicator is created by Metaquotes and it is a basic trading indicator.

This version has nice colors. You can edit in input :

Keep in mind that at the end of the day, the MACD is not a magic bullet. It is just a tool that will help you with your trading. This means that how you use this tool is up to you, and there is no right or wrong way of using this indicator. However, this article will show you the basic ways of trading the two MACD lines and other strategies.

What you do is to use the fast and slow line crossovers as a signal for entries and exits. For example, if you want to go long, you wait for the fast line to come from below, crossover to the top of the slow line and enter a “buy” position. To exit, wait for the fast line to crossover towards the bottom side. This is perhaps the most basic way of trading the MACD, but here’s the thing.

Another useful attribute of the MACD indicator is its ability to gauge the momentum of the price, which is the reason why this indicator is common among momentum traders. To have a better idea of the price momentum, you’d want to refer to the MACD bars.

The longer the bar, the more momentum the price has. What’s neat about this is that you can compare the current bar’s momentum and refer it to the previous bar or bars for easily eyeballing momentum strength or weakness. For example, if the current bar is longer than the previous bar and the previous bar is longer than the one the precedes it, then you can say that the price is gaining momentum. This indicates that this momentum trend is likely to continue until it shows signs of weakness. If the opposite happens and the bar gets shorter and shorter, then you can say the price momentum is getting weaker. But the MACD indicator has another attribute that sets it apart from other indicators, and that’s the divergence and convergence.

The longer the bar, the more momentum the price has. What’s neat about this is that you can compare the current bar’s momentum and refer it to the previous bar or bars for easily eyeballing momentum strength or weakness. For example, if the current bar is longer the than the previous bar and the previous bar is longer than the one the precedes it, then you can say that the price is gaining momentum. This indicates that this momentum trend is likely to continue until it shows signs of weakness. If the opposite happens and the bar gets shorter and shorter, then you can say the price momentum is getting weaker. But the MACD indicator has another attribute that sets it apart from other indicators, and that’s the divergence and convergence.

The easy way of understanding convergence and divergence is by referring to the price trend and the histogram. For example, the price swing high of the short-term trend is going higher and higher. However, if you look at the peaks of the histogram, it’s going lower and lower. This is what is called a divergence.

On the other hand, if the price swing lows of the short-term trend are going lower and lower, but the troughs of the histogram are going higher and higher, then this is described as convergence.

The appearance of divergence and convergence may be a signal that a possible trend change is coming. Thus, you may want to make positions that is a counter to the current short term trend. Entering a position before a price move is usually considered as a “leading” strategy, as opposed to a “lagging” strategy.

Wrapping It All Up

The MACD is an indicator that can trace its roots back before computers and online trading became popular. You can say that its a useful tool as it stood the test of time. The beauty of the MACD indicator is that it can be used as a “lagging” indicator and a “leading” indicator. Such an attribute is what sets it apart from most of the technical indicators out there.

MT4 Close All Button – Free Download

September 28, 2019 by Fxigor

MQL4 Close All Orders – Why You Must Have One

Important notice: Please use SCRIPTS instead of Expert advisors when you want to close all orders. Close all EA is not a good idea. A better idea is to use Close all scripts. Download below…

Silver and Gold at your doorstep! SilverGoldBull

Most traders start with a basic strategy. In most cases, a basic strategy would entail entering one position. As one increases his or her trading knowledge, skill, and experience, it is normal for a trader to enter multiple positions for a variety of reasons. Closing a single trade is effortless. However, if you have multiple positions, then closing them can be a time-consuming task. And, time is something you don’t want to waste when prices are moving in fractions of a second.

MT4 close all button or “panic button” is the button on MT4 chart based on MQL4 script (MT4 script) which can close all positions with the push of a button.

In this article you can see 4 MQL4 scripts and free download.

This is where a “panic button” becomes very useful. In this case, the panic button is termed as MQL4 Close All Orders. In this article, you’ll learn more about Close All Orders, and why you must have one.

MQL4 Close All Orders – What Is It?

An MQL4 Close All Orders is a simple script that once you run it, it will close all your positions immediately. It’s a simple tool, but its usefulness is essential, especially if you are running multiple positions.

Let’s take one example. You’re running five positions at once. Then, for some reason, the price suddenly became volatile, and its behaving erratically and beyond the confines of your expectation. Most professionals will tell you that when you have entirely no idea what the price is doing, it is better to get out. Since you are a smart trader, you follow the advice.

You click your every position and hit close. However, on the third position that you are about to close, the price suddenly spikes out of nowhere. Then in a fraction of a second, you are miles away from the price point you want to close your positions. It’s good if the price spiked into your favor. But what if it didn’t? Are you willing to take that chance that it will always go your way? Are you willing to base your strategy based on luck? If you are a smart trader, then your answer should be a big “NO.”

Alternatively, you can use an MQL4 Close All Orders. In one click of a button, all of your positions get closed. The chances of price running away from you become very slim. There are also other instances that you’d want to have this “panic button” at all times.

It could be that there’s unexpected news that is coming out, and you don’t want to take the risk if the price goes with or against you. You just run the script, and you’re good.

Another instance is when you are trying to execute a multiple profit-taking strategy. During normal price behavior, you plan to exit manually, depending on what triggers you may have. However, the price suddenly spiked in your favor and you know that if you execute your usual profit-taking strategy, you will be leaving money on the table. Hence, hit that Close All Orders script and secure all the profits of your positions almost instantly.

Download Close ALL MT4 indicator

Script 1 :
Close all script if you drop on pair window will close all pending orders of that pair, else will close all.
Install this script in SCRIPT directory : Close All positions

Script 2 :
Close only buy trades script.
Close BUY trades

Script 3 :
Close only sell trades script.
Close SELL Trades

Script 4 :
Close all pending trades script.
Close Pending Trades

Conclusion

At the very least, MQL4 Close All Orders makes it convenient for you to close all of your positions in a single click of a button or certain trigger. At the worst case, it can be your “panic button.” And when it comes to panic buttons, it’s better to have one when you need it versus needing it, and you don’t have one.

Forex Market Open Indicator for MT4

September 28, 2019 by Fxigor

How Do Forex Market Hours Influence My Trading Strategy and can help forex market open indicator

In this article you will read about trading sessions. You can download free indicator “Forex Market Open indicator MT4” (download Forex Market Open Indicator). read more about indicator in this article.

Introduction
You’re familiar with forex, who make the market operate, why it is good to trade forex. Now you need to learn to when you can and should trade. That is, you should have a thorough understanding of the market session.

The market sessions in the forex market are a sort of schedule framed tacitly by the forex market participants to sell, buy and speculate on currencies round the clock.

Maybe you know that the global currency market is not influenced by anyone single market exchange. It involves a network of brokers and exchanges round the world.

The forex market session happens in different places at different times because the market operates in multiple time zones.

In this context, you need to get familiar with various kinds of trading sessions. You may be aware that the market is accessible round-the-clock. This, however, doesn’t mean that the market stays active the whole business day.

As you may be aware, the forex market is operational round-the-clock from Monday to Friday. This happens because the time is different in different parts of the globe. When the trade goes on in a certain part of the world, the other part may be asleep. By this, the market stays operational as traders in one part of the world leave, the void is filled by traders in other parts. Thus, the forex market is running because of the forex market hours.

How is it possible?

As a beginner, you might have heard that the forex, you might have received marketing material saying the market is operates the whole day all the days of the week. It’s a matter of common knowledge for traders dealing equities or other tradable entities known that markets and stock exchanges operate simultaneously with banks on a business day. On the other hand, the foreign currency market is decentralized and therefore highly flexible and operates round the clock.

Despite such operational timings, the forex market is a global market that spans from the main financial centers such as Tokyo and Sydney in the East to all those in the Westernmost part. Each of them operates in a different time zone. Thus, when Tokyo traders leave for home, New York banks are still closed.

Thus, the foreign exchange market works in different time zones. You can access it anytime you like. Forex traders with reasonable experience have the notion of forex market hours. In Sydney, trading starts at 0700 hours, as per the Australian standard time, which is 10 hours earlier to GMT.

Currencies, the volume of trade and time zones – How are they related?

It’s important to note that at the global level, the forex market is influenced largely by banks, companies that deal in export and import of goods and services, hedge funds, various central banks and retailers in forex.

Let’s take a hypothetical example to explain how all this happens. A trader struck a deal last week in Mitsubishi, Japan and an Australian car distributor who is planning to buy 200 cars (SUVs). As per the agreement, the Australian importer is to settle the amount under the invoice on the first trade-hour of Monday. Now, once Tokyo banks start working, the importer will have to change their Australian dollar to Japanese currency to pay for the cars to the exporter of Japanese cars.

As the amount to be paid is a bit big, the desire to buy Yen spurts resulting in a sudden rise in its price on Monday. By this, traders will be bullish for Yen and bearish for the AUD.

This is a plain example to bring clarity on why prices of forex keep on moving. Also, there might be trends created as it happened with Yen in the example. As the number of transactions increase, Yen and will experience more volume of trade. All this results in currencies command more price as compared to those at banks.

Download Forex Market Open Indicator for MT4

Please download rar file and install ex4 in indicator folder. download Forex Market Open Indicator

In this indicator you can simply choose from 65 various markets time sessions.

Why should I focus on trade during particular market hours?

There is a central exchange to deal forex market, nevertheless, you can trade forex any time during the week you like.

It’s important to note that to participate in forex trade, you require a counter party. Thus, to buy anything you require another individual to sell particular goods or service. The situation is in the forex market is akin to his scenario.

If you’re planning to buy USD against JPY at midnight when no trader in Japan or the USA is awake, then it’s probable that is a difficult time to do business. Therefore, it’s advisable to participate in trade during designated trading hours. There are no adequate number of sellers and buyers in the market during the time.

Of course, there are a few brokers who trade during the weekend. Yet the pair currencies do not move appreciably. If you’re a short-term trader who deals forex during a day during business hours, and then closes, it is’ similar to doing trade in the weekend. Thanks to large institutions (financial) and traders not playing their role there might not any remarkable market trend.

Therefore, the forex market gets influenced when principal financial market players at a particular time participate in trade and the liquidity volume is high. This reduces the ask price and bid price difference and is useful for traders to get their orders fulfilled easily without suffering loses.

Why do some forex hours last longer than others?

When an individual from the United States wants to convert $200 into British pounds at a London airport at midnight, it is tantamount to a forex transaction. But as the time is midnight, no cross-border transaction will take place. Transactions that influence markets happen among big banks, hedge funds during the business hours.

It’s also important to note that not all the big bank branches participate in forex trade.

For instance, a Bank of America small branch does not participate whereas one in NY participates. Similar is the case of banks in major Asian markets.

Banking time in the dominant financial centers, time zones in the USA and other important markets cause a sizeable trading in the forex market.

Further, banks in currency trade, financial institution investors, hedge funds also create a large volume of forex transactions. Hedge funds having with considerable international experience buy a large amount of stock globally and to accommodate their portfolio properly.

Likewise, the main stock exchanges also participate in trade. The classic examples are NASDAQ and NY Stock Exchange.

Thus, cross border investments invoicing moving funds globally contribute immensely to the growing foreign exchange magnitude in the market. Coupled with this, banks stock exchanges’ participation in the trade to grow to gigantic proportions

You can choose foreign market hours according to your strategy

In many cases, forex trades trade during the day and according to the time zones and the location of the financial center.

While your trading strategy doesn’t change, your trading strategy about when to participate in trade can help you avoid wasting time. If there is no trading opportunity in trade, the most important thing you have to consider in forex trading is the timing. This is because trade can often largely influence profitability. When you know when to exit the market, it will help to make a workable strategy.

Forex market hours according to strategy-2: Exit at London trading

The London forex accounts for close to 30 % of the volume of trade – largest of all for markets session in the world. It’s for this reason that major fluctuations happen during London trading sessions.

If you’re planning to exit the trading strategies, you can choose breakout at the beginning of London market. To exit, you will have to trade for a short duration time frame, for example, charts of 5 minutes or 15 minutes.

At the beginning of the London session, it is similar to any other instance. But when the trading volume is substantial it makes sense to exit – a lucrative option.

Forex market hours – intraday trading in the post-lunch session of the London session

By the time the New York market opens, the market in London is already ahead. this is good because the volume of trade reaches peak by the time NY market opens.

Many of the short term traders prefer to trade in the post-lunch London session. This is because, at this time, both the large markets are open. More importantly, high liquidity in the market is advantageous for short term traders having a low volume at the time so that they can reduce the transaction cost.

The conventional investment environment avers volatility as the risk of forex trade is high volatility. However, if there is no volatility, it may lead to hardly any profits.

If you wish to be successful, you must know the hours when the market is most active when the volume of trade is super high.

When banks, commodity exchanges, there is a lot of liquidity created.

Under the situation, you must depend on a combo of technical parameters that determine the trading signals. Alternatively, you could become a trader acting based on prices. In any case, you must know well about forex market hours to achieve success.

In the forex market, you can earn money when the market is in moving fast or even when it is declining. You’ll face the toughest situation when it does not operate at all. In such a case, you cannot make money at all. This article makes you understand when it is best to trade. In other words, it will present the best market session when you can maximize your profit.

Forex market time sessions in our Forex Market Open Indicator for MT4

Before getting familiar to the most suitable time to participate in trading, you must consider knowing how a round-the-clock business day in the forex would appear.

The forex market is split into four principal market sessions, namely the Tokyo session, the Sydney session, the New York session, and the London session.

The actual operating times are according to local business time, and most market hours begin between 0700 hours to 0900 hours local time.

The opening and closing times are also different in October/November and March/April sessions as it is in counties like the USA, Australia and the UK and change to/from daylight saving time.

The timings in Spring/Summer in the USA are as follows:

Sydney

In Sydney the open time 07:00 hours, closing time is 16:00 hours.

The corresponding Eastern Daylight Time (EDT) 17:00 hours and 02:00 hours.

And in British Summer Time (BST) the times are 22:00 hour and 07:00 hours.

Tokyo

The Tokyo session opens at 09:00 hours and closing time is 18:00 hours (local time).

The corresponding time in EDT 20:00 hours and closing time is 05:00 hours.

And, in BST, the timings are 01:00 hours and 10:00 hours.

London

The London session begins at local time 08:00 hours and closes at 16:00 hours.

The corresponding time in EDT is 03:00 hours and 11:00 hours.

And, in BST the timings are 08:00 hours and 16:00 hours.

New York (NY)

The NY forex market session opens at 08:00 hours and closes at 17:00 hours.

The corresponding times in EDT are 08:00 hours and 17:00 hours.

And, in BST, the timings are 13:00 hours and 22:00 hours.

The timings in the USA in Fall/Winter as follows:

Sydney

The Sydney session opens at 07:00 hours and closes at 16:00 hours.

The times in EST are 15:00 hour and 24:00 hours.

And in GMT, the times are 20:00 hours and 05:00 hours.

Tokyo

The Tokyo session opens at 09:00 hours and closes at 18:00 hours local time.

The matching time in EST is 19:00 hours 04:00 hours.

And, in GMT the times are 24:00 hours and 09:00 hours.

London

The London market session opens at 08:00 hours and closes at 06:00 hours local time.

The corresponding times in EST are 03:00 hours and 11:00 hours.

And, in GMT the timings are 08:00 hours and 16:00 hours.

The NY market session starts at 08:00 hours and closes at 17:00 hours.

The times in EST 08:00 hours and 17:00 hours.

In GMT, the times are 13:00 hours and 22:00 hours.

In a month, the day when a country moves from/to DST also change. This leads to more confusion. Note that Japan does not take into account day savings. Thus, the Japan system of markets is so simple.

When it comes considering Sydney Open, it’s apt to wonder when the market shifts by two hours as per Easter time zone.

It’s important to note that the Sydney session will be one hour forward by the time USA session adjusts for the standard time. However, if the USA moves one hour back, the Sydney session will move forward by an hour. You need to take this into account if you’re planning to enter trading this time.

Further, you should also take into account the time between a pair of forex trading sessions; there is also a time when two sessions are operating simultaneously.

Trading during summer

In summer, the London session and Tokyo session generally overlap. This happens during 0300 hours and 0400 hours ET.

Further, in both winter and summer, the NY and the London sessions overlap during 08:00 hours to 12:00 hours.

In general, these are the times when the market is most crowded on any trading day thanks to the increased volume when to two markets operate simultaneously.

This is because, during the aforesaid times, each of the the participants in the market is wheelin’ and dealin’. It implies that an increased volume of money is a passing from one account to another. The NY session and London session overlap.

The importance of session overlapping

The busiest of all trade zones are NY and London. The time when these to trading sessions overlap (NY morning and London afternoon), the largest volume of trade is generated on a single market. This period is important because during the period the WMR/Reuters benchmark spot rate of foreign exchange is estimated.

The rate set at 1600 hours (local time) is used for meaning the daily volume of trade and as a price for pension funds and money managers.

A final word

Forex trade sessions are highly decentralized, they function efficiently as a transfer mechanism for all the participants. It’s best for those who participate in speculation in any part of the globe. To succeed in the forex market, and earn profits consistently, make sure you understand the market sessions happening on the business day at each session including all the (London, Tokyo, Sydney, and NY). This will help you put your money in the market optimally.
In our Forex Market Open Indicator for MT4 you can choose 65 markets sessions.

The Best Overbought Oversold Indicator in MT4 – download

September 23, 2019 by Fxigor

In this article we will show you that there are no the best overbought oversold Indicator for mt4 that we can use and have excellent profit. Instead we will suggest strategy which can help you to filter trades and avoid bad over-trading.

As we know, an oscillator is any object (in our case line on chart) or data that moves back and forth between two points.Every major oscillator such as Relative Strength Indicator RSI or MACD or Stohastic Oscillator we can use to find overbought and oversold points on chart. See image below :

For RSI indicator for example, overbought area is above 70 and oversold area is below 30. This tool majority traders use to find overbought and oversold area. But this is not sign that you need to buy from oversold area and to sell from overbought area.

So we need to make filter and only to choose some trades.

Here are one indicator that we use and deceide how to buy from the bottom and sell from the top :

Example strategy :

See :

Please download Overbought Oversold Indicator in MT4 :
Download OverBoughtOversold Indicator

As we can see on Figure, we do not trade every moment when price goes into overbought or oversold area. We have another trigger. It is indicator that measure current price and volume exhaustion.

BUY : If price is oversold area AND it is hourly close area AND Overbought Oversold indicator shows BUY arrow.

SELL : If price is overbought area AND it is hourly close area AND Overbought Oversold indicator shows SELL arrow.

Suggestion :
You can make combination of every oscillator indicator (RSI, MACD, Stohastic etc.) and some indicator which can filter number of trades. It can be some histogram.

Why there are no the best Overbought Oversold Indicator ?

When we have oversold area on H1 chart that can be beginning of selling moment on H4 and daily chart. As same for overbought area.
See this recent example :

Gold reach overbought area on the beginning of September at price 1328. Next several weeks every single day price is higher and higher and it has reach 1550 level. Each instrument can be days, months, years in overbought mode. There are no rules about that. So if you want to find overbought and oversold area – this is not enough to trigger a trade.

Overbought oversold and Pullback as problems in stocks trading market and forex trading market

The outcome of the trade significantly relates to the type of strategies used. When the right strategies are used on a consistent cycle, the trader begins to familiarize themselves with the prerequisites for success.One of the main prerequisites for a successful trade is in-depth knowledge on overbought and oversold stocks. When a trader understand how overbought and oversold stocks affect a market, they are able to determine whether or not the next trade can be compelled without assistance and guidance. Assistance and guidance from brokers can be a valuable tools when trader are beginning to learn. However, this tool may need to be updates as the trade continues.

As a result of this, an ever-updating market requires stock investors to be constantly updating their programs as well. If the stock investor does not update as frequently as the market does, they risk loosing their investment. Overbought and oversold stocks can potentially create a bigger gap in the market value. Overbought and oversold stocks can determine the specific outcome of a situation. Therefore when a stock reaches more than 70 market point, it is given the title as overbought. When the stock drops below 70 market points, it is given the opposite title. The opposite tile is created from an initial loss. The initial loss is determined by the preexisting average values on the market. The preexisting average values have been calculated based on currency rates for each individual country involved in the trade. Brokers and traders from each country are encouraged to work together in order to find a viable solution for each and every trading group.

Internet tools and trading platforms and indicators are also able to identify overbought and oversold stocks. An overbought or oversold stock is likely to generate more attention in the forex market in comparison to home market. The main reason for this is difference in pips. Certain markets are less accustomed to witnessing stock points, When a market is less accustomed to the outcome of stock points, they are less likely to complete an investment. When there is an overall low number of general investments, the risk is increase by 30% percent. When the market risk drops below a certain forex percentage, the number of investments are expected to increase in the opposite direction. Opposite investments for forex can be completed through a variety of strategies and techniques. The strategies and techniques used for each advancement can be seen with a variety of diagrams.

Identifying Overbought and Oversold Stocks and Forex pairs in Theory

When looking for the main indicators for oversold and overbought stock or forex pair, there are a few things to look for. Programs such as MT4 offer highly effective and robust trading on the most common methods for forex trading as well as a thorough definition of both methods. When analyzing these types, there are a range of tips that can be applied. The first tip when looking for oversold and overbought stock or pair is to indicate which type is negative and which type is positive. Oversold stock refers specifically to stock that is most frequently sold on the trading market. Overbought stock can be spotted on the market easily when using the right tools. Oversold stock can also be spotted on the market easily. When the stock rises above 70% percent, it is considered to be overbought. When the stock decreases below 70%, it is considered to be oversold. These figures are subject to change when they are used. Once the figures change, they can begin to accelerate at higher rates in order to accommodate market trends. This is only theory….

There are a few key ways to notice overbought and oversold stocks on the market. This strategy is very important when trying to decide is a particular stock is a wise investment. Viable trade entries rely upon this technique in order to ensure success. The two most common ways to notice and classify oversold stocks are known as the RSI and the stochastic indicator. The RSI allows stock holders to understand certain values which contribute to the overall success of the trade deal. This is very important when dealing with important trades, such as international deals. The stochastic indicator is a type of oscillator. RSI is commonly calculated based on loss and gain while the stochastic indicator is more commonly calculated based on ranges of prices over a larger period of time.

Both of these unique markets methods can be successfully applied to stocks on the market. These methods can be used together in certain scenarios. An experienced trader understands the best use for each type of method. As a result, each trader can use the method that will lead to a successful trade. When a stochastic reaches 100 points, this shows that the session closed. When the session points reach 100, that specifically shows that the highest price was reached. When the highest price is reached for each session, the normal protocol is to close the stock. When these unique techniques are used in tandem, the outcome is more likely to be positive. These tools should be used along with other strategic market methods. When these tools are used in combination with others, they create trade entry market points. The tools can be used in addition with other proven strategies that work with the trading platform.

When you read top forex books you can learn more about these in-depth tools and strategies. These in-depth tools help to prepare traders and allow them to excel in the market. These unique tools can be applied to many different trades in order to ensure they are successful. The stochastic and RSI methods are commonly misunderstood. This program seeks to clarify both methods in terms that are easy to understand. Compiling all the information into a three hour interactive course has allowed traders to excel in their field. The stochastic and RSI methods both need to be applied in real life in order to work. These methods are best learned through interactive course. Traditional textbooks and online programs do not allow the trader to fully understand the application of these tools. When these methods are taught during an interactive course, they are full understood. This will enable the trader to apply them to real life scenarios on an everyday trading platform.

The two different methods were developed by J. Welles. This is very important to note as he was the first one to develop these two different trading methods. When he developed the stochastic and RSI method, he aimed to make them as applicable as possible. This was decided in order to ensure that each trader would value from the information recorded through these methods. Both of the methods have similar features in common. They are both classified as viable ways to read, analyze and reinvest in stock.

When the RSI methods is used to indicate stock points, the system begins to create a cohesive balance with the other methods on the market. This means that when an RSI is judged in terms of points, it has the ability to relate to other methods within the same market space. For example, the RSI is judged based on points for the purpose of gaining insight on the stock patterns. Therefore if a forex market is using the same technology to analyze their markets, they will relate on the same level. Points can be used as a universal system, therefore promoting a common ground. When a common ground is created between different markets, they do not need to be converted. When trading stocks, there are often more than one type of currency used. Many currencies can be traded with one another as long as the currency exchange rate is established. There are preset currency exchange rates available for the stock market. These markets are very important to ensure the purpose of each currency is used to their capacity during trading deals.

The next aspect of trading involves creating new analytical methods. Analytical methods help to create a unique balance between markets trends and market stocks. These new methods find a way to merge both pieces of information together. By merging similar types of information with one another, patterns are created. These patterns are then further analyzed in order to create a new stock strategy. This is the process of creating stock strategies. These strategies are then adopted by individuals in the stock industry. If the strategies are proven to be successful, they are used long term. When an idea or method works long term, it gains traction. For example, the stock market has seen many trends come and go. Certain long term investment styles work better than others. For this reason, the styles that fit the best are kept while the ones that do not work are no longer practiced. This creates a balance when looking for the absolute best strategies to use. Strategies that are proven to work time and time again will be used long term in the market and industry.

Conclusion

Evan you trade forex or trade stocks there are no statistical proof that buy from the bottom or sell from the top bring you profit. Market is always in some cycle. Oversold area on H1 chart and H4 chart is maybe only beginning of more selling pressure on Daily and weekly chart and maybe next whole month we will see new lower lows.
But if you are short time trader with defined stop loss you can try to filter trades and try to buy from the bottom or sell from the top with tight stop loss and use additional indicator and additional trigger.