WHAT IS SRC Forex Indicator?
A bullish divergenceoccurs when the SRCcreate an oversold reading followed by a higher low that matches correspondingly lower lows in the asset price. This indicates rising bullish momentum, and a break above oversold territory could be used to trigger a new long position. A bearish divergence occurs when the SRC creates an overbought reading followed by a lower high that matches corresponding higher highs on the price.
This indicates weakness in the trend and bearish momentum getting stronger which can signal for a new short position. Being an advanced form of regular RSI our indicator usages some well-known other calculations like weighted moving average ( WMA ) which determines trend direction more accurately than the simple moving average ( SMA ), and it assigns identical weights to all numbers in the data set. The smoothed period is also used which we can also set manually from setting and they all are calculated together with RSI value to make this wonderful indicator work in action.
It has beautiful colored clouds that aware market players of the current market sentiment & momentum. Light blue color indicates bullish sentiment situation or bullish momentum strengthening and light red color indicates bearish sentiment situation or bearish momentum strengthens. Those can be used to judge the optimistic or pessimistic mode of the overall market in that period of time. SRClines are advance and it reflects light blue when the actual price of the asset is appreciating and its color change into light red when the actual price of assets is devaluing. The vertical transparent red color on the indicator indicates the SRCline crossing above or below 70 or 75 overbought lines. While the light blue color indicates the SRCline crossing lower or above 30 or 25 of the oversold level.
WHAT’S THE BENEFIT OF USING SRC?
– Measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of any financial asset.
– Provides technical traders with information about bullish a bearish potential price momentum.
– Divergence detector in any financial market.
– Beautiful coloured clouds that aware market players of the current market sentiment or momentum of any given asset price.
– Vertical transparent colors over SRCs line indicating SRCs line crossing above or below a certain threshold of two extremes levels of the oscillator indicator
ONLY FOR MT4
ONLY INDICATOR + GUIDE INCLUDED