RSI (Var) Hull of Hull Average Indicator
Platform: MT5 Type: Trend Last update: September 22, 2024Before we start explaining the RSI (Var) Hull of Hull Indicator, you should know that the Relative Strenght Index (RSI) uses for its calculations something called Wilders EMA. Replacing that Moving Average with some other type results in a totally different version of RSI comparing the original RSI.
As the name suggests, this gauge uses Alan Hull’s Moving Average for the following things:
- to replace the Wilders EMA with Hull average
- and to add price filtering prior to calculation
Anatomy of the RSI (Var) Hull of Hull Average Indicator
The RSI (Var) Hull of Hull Average is just an oscillating line that is additionally colored red and green depending on the ongoing signal. As you can probably guess, the red color indicates a bearish signal, and conversely, the green color indicates a bullish signal.
You can also pay attention to the 50 level. When the line is above that value it means the overall market is considered bullish. Similarly, the values drop below that, suggesting an overall bearish market.
Buy Signal
Follow these steps for a long trade:
- The oscillator line is above the 50 level
- The color of the line changes from red to green
- Open buy order after the color change and triggering candle gets closeed
- Set stop loss a few pips below the most recent market low point
- Take profit after reaching positive risk to reward ratio or when line changes color
Sell Signal
Follow these steps for a short trade:
- The oscillator line is below the 50 level
- The color of the line changes from green to red
- Open sell order after the color change and triggering candle gets closeed
- Set stop loss a few pips above the most recent market high point
- Take profit after reaching positive risk to reward ratio or when line changes color
