RSI Filter indicator - filter for trading strategies
RSI Filter indicator - it's a modification RSI indicator for the MetaTrader 5 platform, designed to be used as a filter.
The state of RSI is checked (compared to the 30 and 70 levels) and, depending on the breakdown of these levels, three states of the indicator are constructed:
- higher - when we see a net increase above the 70 level and when the condition is inherited from the previous bar,
- lower - when there is a net decrease below the 30 level and when the condition is inherited from the previous bar,
- Neutral - when the value floats between 40 and 60.
Thus, the RSI values are a little stronger filtered. The indicator can be applied to other indicators, and some combinations can be interesting (for example, applying this filter to Momentum).
В RSI Filter indicator it is better to use a short RSI period. Long RSI periods result in fewer breakouts of the 30 and 70 levels and this can limit the level of its use. As always, it is recommended to use short RSI periods - the level up to and including 10 is a kind of consensus.
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