Looking at Forex analytics, all methods can be divided into a modernized, innovation and classic. This rule rasprostronyat and technical analysis indicators Forex. A lot of indicators that can certainly be called classic, give in modernization and perfection.
One of these indicators is RSI Improved, which is nothing more than a modernized classic RSI. If you look, even at first glance, you can see that he has changed a lot visually, and become part of the classic RSI version Improved.
The indicator consists of four lines:
1. The blue line is the value of RSI with the original period. In other words, this line is a classic RSI.
2. The red line is the inverted value of the classical period RSI with Period Rotated. Then we wake up call inverted RSI.
3. The green line is drawn as a bar graph and represents the difference between the classical and inverted RSI
4. White line (pictured it is labeled in yellow) shows the rate of price change.
Application of the indicator RSI Improved
RSI Classic retains all the properties and signals entry into the market (it you can read on our site link Description of the indicator "Relative Strength Index" (Relative Strength Index RSI) ).
With long-term divergence of classical and inverted RSI, their intersection generates a signal to enter the market. If the line crosses the classic RSI upside down, it is necessary to conclude an order to sell and vice versa.
Histogram Indicator RSI Improved reminds histogram MACD and the meaning they are one and the same, but the signals are not as MACD histogram can not be applied to the histogram of the indicator.
The white line shows the rate of price change, and it is still quite not the last of the indicators in the forex market. The only negative is that this line measures the rate of price change in meaning of the two lines of RSI, but it would be better if the measurement is directly related to price.
This indicator is one of the newest in the forex market, so its potential is yet to be fully disclosed. Accuracy of the data signals is not guaranteed because information about this indicator is not even the data that was written above, this is only the result of the first pre-tests.
In the future, we will add information about the indicator RSI Improved and try to publish information on the new indicators.