The Composite Index indicator for Metatrader 5 is a valuable buy/sell trend trading tool composed of RSI and momentum.
The indicator appears in a separate chart window and it can be traded as a simple crossover trading system (see example chart).
Essentially, we are only concerned about the position of the green and red signal lines.
It works as follows:
- A buy trend occurs when the green line is positioned above the red line.
- A sell trend occurs when the red line is positioned above the green line.
The following indicator inputs and parameters can be modified: price, RSI slow period, RSI fast period, momentum period, and average period 1 & 2 & 3.
Please make yourself familiar with this technical indicator and test it first on a demo account before using it on real trading account.
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Composite index.mq5 Indicator (MT5)
Chart Example
The following chart shows how the Composite Index indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The Composite Index Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is formed when the green signal line crosses above the red signal line from below.
- Open a buy order and place a stop loss slightly below the previous swing support.
- Exit the buy trade for a fixed profit target, or wait for a sell signal to close the trade.
Sell Signal
- A sell signal is formed when the green signal line crosses below the red signal line from above.
- Open a sell order and place a stop loss slightly above the previous swing resistance.
- Exit the sell trade for a fixed profit target, or wait for a buy signal to close the trade.
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Composite index.mq5 Indicator (MT5)
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Composite index.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration