Signal Lines Guide

RelicusRoad Pro features two independent signal lines that adapt based on your chosen strategy. These lines provide clear visual guidance for trend direction, entry timing, and trade management.

Understanding Signal Lines

What Are Signal Lines?

Signal Lines are dynamic indicators that:

• Change color based on market conditions
• Adapt to your selected strategy
• Provide entry and exit signals
• Confirm trend direction
• Filter out market noise

Two-Line System

Signal Line 1 (Primary)

• Main trend indicator
• Strategy-specific calculations
• Clear color coding
• Entry signal generation

Signal Line 2 (Confirmation)

• Secondary confirmation
• Different calculation method
• Confluence identification
• Exit signal assistance

Available Signal Modes

1. MACD Mode

How It Works:

• Based on MACD crossovers
• Momentum-based signals
• Excellent for trending markets
• Clear divergence identification

Color Coding:

• Green: Bullish momentum
• Orange: Bearish momentum
• Gray: Neutral/consolidation

Best For:

• Trend following
• Strategy #6 implementation
• H1-D1 timeframes
• Major pairs

2. Reversal Mode

How It Works:

• AI-powered reversal detection
• Price action analysis
• Volume confirmation
• Market structure shifts

Signal Generation:

• Green: Buy reversal detected
• Orange: Sell reversal detected
• Quick color changes at turns

Best For:

• Counter-trend trading
• Scalping reversals
• Support/resistance bounces
• Volatile markets

3. Trend Mode

How It Works:

• Multiple moving average analysis
• Trend strength measurement
• Directional bias confirmation
• Smooth trend following

Applications:

• Position trading
• Trend confirmation
• Risk management
• Strategy combination

4. ParabolicSAR Mode

How It Works:

• Classic PSAR calculations
• Stop and reverse system
• Clear trend visualization
• Automatic trailing stops

Visual Representation:

• Line above price: Bearish
• Line below price: Bullish
• Color intensity shows strength

5. Momentum Mode

How It Works:

• Optimized momentum oscillator
• RelicusRoad-specific values
• Overbought/oversold detection
• Divergence identification

Trading Signals:

• Extreme readings reversal
• Momentum shifts
• Trend exhaustion
• Continuation patterns

6. Ichimoku Mode

How It Works:

• Cloud relationship analysis
• Multiple timeframe confluence
• Trend strength assessment
• Support/resistance dynamics

Color System:

• Green: Above cloud (bullish)
• Orange: Below cloud (bearish)
• Gray: Inside cloud (neutral)

7. Moving Average Mode

How It Works:

• Customizable MA types
• Price cross detection
• Dynamic support/resistance
• Trend filtering

Configuration Options:

• MA period selection
• MA type (SMA/EMA/WMA)
• Cross alert settings
• Multi-timeframe options

Trading Strategies

Strategy 1: Dual Line Confluence

The Setup:

1. Both lines same color
2. Price respects lines as support/resistance
3. Additional confirmation (arrows/zones)
4. Clear risk definition

Example Trade:

Signal Line 1: Green (Trend Mode)
Signal Line 2: Green (MACD Mode)
Price bounces from green lines
Entry: On bounce confirmation
Stop: Below both lines
Target: Next resistance zone

Strategy 2: Divergence Trading

Identifying Divergence:

1. Price makes new high/low
2. Signal line doesn’t confirm
3. Volume decreases
4. Reversal pattern forms

Execution:

• Mark divergence points
• Wait for line color change
• Enter on momentum shift
• Target previous levels

Strategy 3: Line Cross Strategy

Types of Crosses:

1. Price crossing signal line
2. Signal lines crossing each other
3. Color change transitions
4. Multi-timeframe alignment

Trading Rules:

• Confirm with market structure
• Check higher timeframe
• Require volume support
• Use appropriate stops

Advanced Techniques

Multi-Timeframe Analysis

Setup Configuration:

Chart 1 (H4): Trend direction
- Signal Line 1: Trend Mode
- Signal Line 2: Ichimoku

Chart 2 (M15): Entry timing
- Signal Line 1: MACD
- Signal Line 2: Momentum

Alignment Trading:

1. H4 shows clear trend
2. M15 shows same direction
3. Enter on M15 signal
4. Manage by H4 trend

Combination Strategies

Power Combinations:

1. Trend + Momentum

   • Trend for direction
   • Momentum for timing
   • High probability setups

2. MACD + Reversal

   • MACD for trend
   • Reversal for entries
   • Excellent for swings

3. Ichimoku + MA

   • Cloud for bias
   • MA for precision
   • Clear structure

Custom Settings

Optimization Tips:

1. Fast Markets (Scalping)

   • Shorter periods
   • Sensitive settings
   • Quick color changes

2. Slow Markets (Position)

   • Longer periods
   • Smooth settings
   • Fewer false signals

3. Ranging Markets

   • Reversal modes
   • Tighter parameters
   • Focus on extremes

Practical Applications

Session-Based Trading

London Session:

Mode: MACD + Momentum
Focus: Trend continuation
Pairs: GBP, EUR crosses
Style: Momentum trades

New York Session:

Mode: Reversal + Trend
Focus: Reversals at extremes
Pairs: USD majors
Style: Counter-trend

Asia Session:

Mode: MA + Ichimoku
Focus: Range boundaries
Pairs: JPY crosses
Style: Mean reversion

News Trading

Pre-News Setup:

1. Switch to neutral modes
2. Wider stop losses
3. Reduce position size
4. Wait for settlement

Post-News Trading:

1. Let volatility settle
2. Confirm new trend
3. Trade with momentum
4. Follow signal lines

Risk Management

Stop Loss Strategies

Line-Based Stops:

• Below/above signal lines
• Add ATR buffer
• Account for spreads
• Trail with line movement

Fixed Stops:

• Predetermined levels
• Risk percentage based
• Independent of lines
• Better for news

Position Management

Scaling Methods:

1. Add on Strength

   • Same color continuation
   • Increasing momentum
   • Risk original only

2. Reduce on Weakness

   • Color change warnings
   • Divergence forming
   • Lock in profits

Common Mistakes

Signal Misinterpretation

❌ Trading Every Color Change

• Require confirmation
• Check market context
• Avoid choppy periods

❌ Ignoring Higher Timeframes

• Always check bias
• Respect major trends
• Trade with flow

❌ Over-Relying on Signals

• Combine with price action
• Use other confirmations
• Maintain discipline

Technical Errors

• Wrong mode for conditions
• Mismatched timeframes
• Ignoring divergences
• Poor stop placement

Performance Optimization

Backtesting Results

By Mode Performance:

• MACD: 65% win rate
• Reversal: 70% win rate
• Trend: 68% win rate
• Momentum: 66% win rate

Best Combinations:

• Trend + MACD: 72%
• Reversal + Momentum: 74%
• Ichimoku + MA: 69%

Improving Results

1. Mode Selection

   • Match to market type
   • Consider volatility
   • Test combinations

2. Timing Refinement

   • Wait for confirmation
   • Use limit orders
   • Avoid first signal

3. Risk Adjustment

   • Smaller size in ranges
   • Larger in trends
   • Scale appropriately

FAQ

Q: Can I use different modes for each line? A: Yes, this often provides better confluence and confirmation.

Q: Which mode is best for beginners? A: Start with Trend or MA mode for clearer, slower signals.

Q: How do I reduce false signals? A: Use higher timeframes, require confluence, and respect sessions.

Q: Should lines be visible on all timeframes? A: Personal preference, but fewer is often clearer.

Master more features with Action Levels or review Trading Strategies.