Profitable Forex strategies for non-standard indicators 2
Tactics of trading on the oscillator RD Combo
RD Combo is a combined indicator related to oscillators. In terms of the frequency of queries in search engines, it is inferior to stochastics and RSI but differs in a formula more adapted to modern market trends. This indicator allows you to get patterns in the movement of prices that are not visible to the naked eye. True, it should be borne in mind that patterns can be violated by the news background, therefore, during the release of statistical reports and releases, we do not open deals.
RD Combo on the graph reflects the values in the form of a histogram. As soon as the price passes a certain threshold level, a signal appears that speaks of an imminent price reversal. The essence of the strategy for this indicator is that the deal opens after the appearance of two columns (candles) that will cross the specified threshold.
- timeframe – H1;
- Asset – EUR / GBP.
Despite the fact that with such a timeframe, signals will appear relatively rarely, it allows filtering price noise and random corrections.
RD Combo Settings:
- Do Alert For Entry, Do Alert For Exit (turning on / off the sound signal to open or close a deal), Debug Logger, Debug logger Data (displaying information in the log) – everything is individual here, you can enable or disable it.
- History Size – 5000. The number of candles on the basis of which the indicator analyzes and issues a forecast;
- Color Threshold – 5. Threshold level. After the price passes this threshold, colored columns appear;
- Noise Filter RVI – 0.03 (noise filter, put this value without going into details);
- Levels (4, -4).
The condition for entering the market is simple: as soon as RD Combo draws two red bars, this means that a reversal is planned and a long position can be opened on the next candle.
You can set the stop length as you see fit (optimally 20 points). After 10 points of profit are received, a third of the transaction can be closed, the second third is closed upon reaching a profit of 20 points, the balance is insured by trailing. Opening a short position is similar: the appearance of 2 green columns is a signal to open a position. If the effectiveness of the strategy is not the best, it makes sense to decrease or increase the Color Threshold.