💎The TradeMaster Oscillator is an innovative and reliable tool that incorporates the principles of several technical analysis methods to enrich your trading strategy. Using a combination of our six unique indicators, it provides a complex and multidimensional picture of market dynamics.
👉 We focus on the basic setup of the TradeMaster Oscillator, which includes our proprietary Global and Local RSI indicators. You can customize this basic configuration by taking advantage of the additional combination of our six unique indicators.
- Understand the difference between Global and Local RSI: The Global RSI represents the overall relative strength, while the Local RSI describes the relative strength within broader movements. It’s as if we have both a macro and micro view of relative strength at the same time.
- Identify extreme values of Local RSI: Look for extreme values of Local RSI (overbought/oversold in the Stochastic RSI). These often signal a turning point in the RSI, which naturally reflects in the price. We display the extreme values of Local RSI in a “heatmap” style outside the Global RSI bands.
- Smooth the RSI: You have the option to smooth the RSI with your preferred smoothing method (SMA, EMA, HMA, RMA, WMA) and length. Due to different smoothing behaviors, the standard extreme values of RSI (>70 or <30) may not be optimal and could even be useless.
- Adaptive bands for more relevant extreme values: By enabling adaptive bands, the extreme values of RSI adapt to the market dynamics of the given asset, providing much more relevant reference points for overbought/oversold states for both Global and Local RSI. You can use this feature without smoothing, but it rarely makes a significant difference unless you experiment with the length of RSI calculation.
- Incorporate multiple indicators: Beyond Global and Local RSI, you can display six different proprietary indicators in the main theme of the oscillator. From these, you can apply the confirming condition as well. These include Sentiment (fear and greed), Momentum, Trend Strength, Volume, and Volatility.
- Choose the display style of Global RSI: The Global RSI can be depicted in candle, bar, band, or line form. Candles and bands can be useful in detecting rejections of relative strength (wicks), similar to OHLC data. Sometimes there are “hidden rejections” visible in relative strength but not in OHLC data, which naturally provides an advantage.
- Customize colors: You can set all colors in the menu to match your preferences. This customization allows the Oscillator to be as clear and intuitive as possible for your individual trading style.
- Monitor the current state of RSI: In the lower right corner, you can view the current state of RSI. This feature allows for a quick evaluation of the current market state without having to navigate away from the chart.
- Use multiple indicators together: While every indicator within the oscillator provides valuable information, their true power lies in combination. Identify harmony between indicators to confirm potential trades. For example, a bullish sentiment signal combined with a low volatility reading may indicate a favorable buying opportunity.
- Consider the market environment: Although the TradeMaster Oscillator provides a robust toolkit, always consider other aspects of the market environment. Use the oscillator along with other technical, fundamental, or sentiment analysis methods to develop your complete trading strategy.
🛑Remember, the TradeMaster Oscillator should play a key role in your broader trading strategy. Take advantage of all its features, and always keep risk management principles in mind.