High Profits StepMA RSO (Relative Strength Oscillator) System – StepMA Forex Binary Options Trading with Powerful and Accurate Relative Strength Oscillator or RSO indicator.
Relative Strength Oscillator or RSO Indicator is an Oscillator version of RSI.
RSI as a powerful and accurate indicator is very popular. It is an index indicator and varies in the range of 0 to 100.
We used to see the 70s or 30s on RSI, then decide to open a new position. But as an indicator, symmetry is more readable and more suitable for comparison. Oscillators have a center line of usually 0.0 and swing around the center line. RSO intends to do this role. With RSO everything is as the same as before on RSI, just minus 50.
Here are the 20s and -20s as overbought and oversold positions now.
I added colored bars just for more clarity;
- GREEN color bars show increasing of RSO
- RED color bars show decreasing of RSO
RSO or RSI curves cannot show little changes, while colored bars can.
For example, when RSO is over 20, first RED bar reveals direction change. As you can see, RSO with bars is more comprehensible with just a glimpse.
Sequential GREEN/RED bars indicate that we should wait for more for direction change.
As shown in the following picture, RSO is around 20 and starts to decrease. Without bars warning, we may be convinced to open a short position. However sequential opposite color bars is a good indicator alert to aware we do not do anything.
Without bars warning, we may be convinced to open a short position. However sequential opposite color bars is a good indicator alert to aware we do not do anything.
ForexWOT StepMA RSO Trading System and Strategy designed for intra-day trading and will be clear even to the beginner.
- Best Time Frames: M30 and H1, but the system works well also in H4 and Daily time frames
- Most Recommended Currency Pairs: GBPUSD, EURUSD, USDJPY, and all Major Pairs
- VBBS (Bollinger Bands Stop) indicator
- Support Resistance
- Signal Trend
- Kijun-Sen of Ichimoku Kinko Hyo
- Williams, Percent Range
- StepMA upward and below the price
- RSO Green color bars and above 0 level
- VBBS (Bollinger Bands Stop) indicator Green color below the price
- Kijun-Sen line upward and below the price
- William’s Percent Range indicator line upward above 50 level
- Signal Trend Green color bars
- Green color Support Resistance line below the previous swing low
- StepMA downward and above the price
- RSO Red color bars and below 0 level
- VBBS (Bollinger Bands Stop) indicator Red color above the price
- Kijun-Sen line downward and above the price
- William’s Percent Range indicator line downward below 50 level
- Signal Trend Red color bars
- Green color Support Resistance line above the previous swing high
- Stop-loss is set for the VBBS (Bollinger Bands Stop) indicator
- This is a great trend following strategy