The Composite Index Metatrader 5 Forex indicator as designed to resolve the divergence failure problem found in the original Relative Strength Index indicator.
However, the indicator’s ability to offer specific horizontal levels of support that are found within the Composite Index MT Forex indicator add to its worth.
The Composite Index MT5 forex indicator takes the normalized formula of the basic RSI indicator and eliminates the normalization range restrictions.
The Composite Index MT5 custom forex indicator deploys an embedded momentum calculation along with a short-term RSI smoothed.
There are three lines found within the Composite Index Metatrader 5 indicator, the Dark gray, lime green and orange red lines, where they represent the Composite index, Composite index 2 and Composite index 3 lines respectively.
The EUR/USD H4 chart below displays the Composite index Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long when the lime green line intersects the dark gray line of the Composite index Metatreder 5 forex indicator bottom up.
Sell Signal. Go short when the lime green line intersects the dark gray line of the Composite index MT5 Forex indicator in a top downward fashion.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dark gray line of the Composite index Forex Metatrader 5 indicator intersects the lime green line in a top downward manner.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the dark gray line of the Composite index MT5 forex indicator intersects the lime green line in a bottom up fashion.
Tip: Intraday traders who trade on higher timeframes i.e. 4-hour chart will find the Composite index MT5 fx indicator a very useful trading tool.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Price, RSI slow period, RSI fast period, Momentum period, Average period 1, Average period 2, Average period 3), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Composite index.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)