There are quite a few technical analysis indicators, the essence of the formula of which is not worth exploring. It makes no sense to delve into the mathematical apparatus, if you can focus directly on trade. The RD Combo indicator is one of them. It is unlikely that you will find on the Internet the history of its origin. And its formula is practically not described anywhere. But this does not prevent him from remaining in the number of popular oscillators – judging by the statistics of traders ’requests in search engines, it is not as good as a stochastic or relative strength index, but it fully competes with modified variations of indicators. Read more about what RD Combo is and how to make money with it.
RD Combo – Oscillator for Medium-Term Strategy
RD Combo is a Forex indicator that converts accumulated historical data using a unique mathematical algorithm. It allows you to detect patterns in price dynamics that are not visible to the naked eye. Evaluation of these patterns suggests further price movement. True, force majeure and the news factor can make unpleasant adjustments to his work.
RD Combo is referred to as oscillators. On the chart, the indicator is expressed in the form of a histogram and partly resembles MACD. But in this case, the gray bars indicate the general direction of the price, the red and green signals that a reversal may occur soon. A reversal signal is formed after the market exceeds a certain threshold level. The principle of trading on RD Combo is the appearance of 2 columns of the same color and the opening of a position in the direction of a potential reversal.
- timeframe – H1. The hourly interval in this case is justified by the exclusion of price noise and lag;
- currency pair – EUR / GBP.
- DoAlertForEntry, DoAlertForExit (alert, beep, to enter the market and exit), DebugLogger, DebugloggerData (display information in the log) – false by all parameters;
- HistorySize – 5000. This is the number of candles that are taken into account in the indicator algorithm;
- ColorTheshold – 5. Threshold. If it is exceeded, the indicator columns will turn red or green;
- NoiseFilterRVI – 0.03 (noise filter);
- Levels (4, -4).
A long position is opened when the RD Combo draws two red columns in a row. On the next candle you can open a trade with a stop of 20 points.
The conditions for opening a short position are opposite – the columns should be green. We close the position as follows: after 10 points of income have been received, 1/3 of the position is fixed, the stop is moved to breakeven. After receiving 20 points of income, we close another 1/3 of the transaction and insure the rest of the position with 10 points of trailing.
RD Combo works well in a trending market, allowing you to make money at the moment of its inception. If the strategy gives frequent false signals, we recommend changing the ColorTheshold parameter in one direction or another. Most often helps. There are questions – ask them in the comments or on the forum. And successful trading!