Dynamic Zone RSI VertexFX Indicator

The Dynamic Zone RSI is a powerful VertexFX client-side indicator based on the Relative Strength Index (RSI) and Bollinger Bands used to identify market swings.

The Relative Strength Index (RSI) indicator is useful in identifying the current trend, and its strength. When the RSI bottoms out and starts to rise it implies a bullish trend. On the contrary, when the RSI tops out and starts to fall it implies a bearish trend. The Bollinger Bands provides a trading range for the price based on standard deviation. The Dynamic Zone RSI indicator combines these two indicators to provide a composite overview of the trend.
In the first step, the RSI is calculated based on the RSI period. In the second step, the Bollinger Bands of this RSI are calculated to generate the center, upper and lower RSI zones. The range between the upper and lower band is called the Dynamic Zone.
When the RSI is below the lower band, the trend is bearish. When it turns sideways or bottoms out, the trend now becomes neutral. When the RSI crosses above the lower band from below it is considered the start of a bullish trend.
Likewise, when the RSI is above the upper band, the trend is bullish. When it turns sideways or tops out, the trend now becomes neutral. When the RSI crosses below the upper band from above it is considered the start of a bearish trend.
Unlike RSI which provides fixed levels (e.g. 30/70) for entry and exit, Dynamic Zone RSI adapts the trading levels based on the price and the characteristics.
BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the Dynamic Zone RSI (blue) crosses above the lower band from below.

SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the Dynamic Zone RSI (blue) crosses below the upper band from above.

Comments

WPR+CCI Vertexfx Indicator

The WPR+CCI is a powerful VertexFX client-side indicator based on the Williams Percent Rank (WPR) and the Commodity Channel Index (CCI). The Williams Percent Rank indicator provides insights into the current price with respect to its historical highs and lows over the specified period. Lower values of WPR suggest bearish trend and higher values of WPR indicator bullish trend. The WPR is bounded between -100 and 0. The Commodity Channel Index (CCI) measures the price variations from its statistical mean. Traders use CCI to help identify price reversals, price extremes and trend strength. The CCI typically oscillates above and below a zero line. Normal oscillations will occur within the range of +100 and -100. Readings above +100 imply an overbought condition, while readings below -100 imply an oversold condition. The WPR+CCI indicator uses the WPR as the primary indicator and the CCI as the filter indicator. When the WPR is rising and the CCI is above +80 the WPR+CCI indicator turns BL...

ICWRA VertexFX Indicator

ICRWa ICWRa indicator is a VertexFx indicator that provides precise BUY and SELL signals by identifying market cycles using trends. When the price moves in well-defined cycles, the trending indicators like Commodity Channel Index (CCI) and Average True Range (ATR) are useful in identifying trading spots where entry and exit signals can be taken. During sideways markets and whipsaws, these indicators can be tuned to avoid trades, or to exit losing trades quickly. The ICWRa indicator employs this strategy. In the first step, we calculate the Commodity Channel Index (CCI) over the recent 50 bars. In the second step, we calculate the Average True Range (ATR) values over the recent 5 bars. In the third step, we calculate the standard deviation of the CCI and ATR over the recent 50 bars to identify the trading triggers. When all the three components are rising, a BUY signal is generated by the indicator. Similarly, when all the three components are falling, a SELL signal is generate...

RSIofPSAR VertexFX Indicator

RSIofPSAR is a VertexFX indicator that identifies trend reversals, it is based on two underlying indicators namely the Parabolic Stop-And-Reverse (PSAR) and the Relative Strength Index (RSI). The PSAR indicator is very useful in trend-following techniques when the trend is clear. However, it leads to whipsaws in sideways markets leading to losses. The RSI indicator is useful in identifying trend reversals and sideways markets. RSIofPSAR is created by combining these characteristics from the two indicators providing use with a composite indicator the identifies trend reversals. In the first step, we calculate the Parabolic Stop-And-Reverse (PSAR) of the price series. In the next step, we calculate the Relative Strength Index (RSI) of the PSAR calculated in the previous step. Instead of calculating the RSI using the standard technique, we use a smoothing co-efficient to eliminate the lag. The RSIofPSAR is a bounded oscillator ranging between 0 and 100. It turns BLUE when it is rising an...

VertexFX Indicator

Search This Blog