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Price: $9.00
Indicator: SRCIndicator.ex4 (Unlocked), NO MANUAL.
SRC Indicator: The Smoothie RSI Cloud Explained
The Relative Strength Index (RSI) is a widely used momentum indicator in technical analysis that helps traders gauge whether an asset is overbought or oversold. It measures recent price changes and displays the result as an oscillator moving between 0 and 100. Developed by J. Welles Wilder Jr. in 1978, RSI remains a cornerstone tool for spotting shifts in market momentum.
Building on this classic, the Smoothie RSI Cloud (SRC) Indicator is an advanced, hybrid version of the standard RSI. It retains all the powerful features of the traditional RSI but enhances them with additional smoothing techniques and trend analysis tools for greater accuracy.
Key Features of the SRC Indicator
Momentum Insight: Like the classic RSI, SRC reveals bullish and bearish momentum, typically plotted in a separate pane below the price chart.
Overbought/Oversold Signals: Values above 70 signal overbought conditions, while values below 30 indicate oversold markets.
Bullish and Bearish Divergences:
Bullish divergence happens when SRC hits oversold levels but forms a higher low while the price makes a lower low—suggesting rising buying pressure and potential for a long trade.
Bearish divergence occurs when SRC reaches overbought territory but forms a lower high as the price sets a higher high—signaling weakening trend strength and possible shorting opportunity.
Advanced Smoothing: The SRC uses a Weighted Moving Average (WMA) instead of a Simple Moving Average (SMA). WMA gives more importance to recent data, improving trend detection.
Customizable Smooth Period: Users can manually set the smoothing period to tailor the indicator’s sensitivity.
Visual Sentiment Clouds:
Light Blue Clouds show bullish momentum or strengthening positive sentiment.
Light Red Clouds highlight bearish momentum or growing negative sentiment.
Dynamic Color Changes: The SRC line itself shifts color—light blue when the asset price is rising, light red when it’s falling—making momentum visually intuitive.
Crossing Alerts: Vertical transparent red lines indicate SRC crossing above overbought thresholds (70 or 75), while light blue vertical lines mark crossings below oversold levels (30 or 25).
Why Use SRC?
The Smoothie RSI Cloud blends traditional momentum analysis with enhanced smoothing and visual cues to help traders better interpret market sentiment and price momentum. Whether you’re spotting entry points, managing risk, or confirming trends, SRC offers a clearer, more nuanced view of the market’s pulse.
What Are the Benefits of Using SRC?
Measures Momentum Accurately: Evaluates recent price changes to identify overbought or oversold conditions in any financial asset.
Bullish and Bearish Momentum Signals: Provides traders with clear insights into potential upward or downward price movements.
Divergence Detection: Helps spot bullish and bearish divergences, a powerful tool for anticipating trend reversals.
Enhanced RSI Calculation: Combines the classic RSI with Weighted Moving Average (WMA) and customizable smoothing periods for more precise trend analysis.
Visual Market Sentiment Clouds: Displays colored clouds that highlight the current market momentum—bullish or bearish—making it easy to interpret at a glance.
Clear Threshold Alerts: Vertical transparent colors on the SRC line signal when the indicator crosses key overbought or oversold levels, helping traders react promptly.
Product Features
Smooth Relative Cloud: Visually highlights overbought and oversold zones.
Momentum Shift Alerts: Notifies when market momentum changes direction.
Divergence Detection: Identifies important bullish and bearish divergences.
Advanced RSI Version: Offers improvements over the standard RSI for enhanced performance.
Alert System: Built-in alerts keep you informed of critical indicator signals.
MetaTrader 4 Compatible: Fully integrated with the popular trading platform.
Works on All Currency Pairs: Versatile for forex trading.
High Winning Rate: Proven performance with more than 80% success rate.
Non-Repainting Indicator: Signals remain stable and reliable after they appear.
