does the rsx needs to be blue to buy and red to sell or they are only used for hidden divergence?

No, you should not use the rsx slope change of color to enter or exit a trade.
You should also take in consideration that it shows possible reversals when it's against the trend, and the divergence is much much stronger when it's in the Overbought or Oversold territory (90 and 10). You should not take any trades only based on Divergence, please take in consideration all aspects of the system in place.
If you notice in the charts, when the Divergence (classic or hidden) is in the same direction of the 200 EMA is really powerfull.

Hey guys, sorry for not posting as much as I prefer, but I would like to show you another example with Dow Jones this morning.

The advantage of using different Time Frames to help us decide when to enter a trade.
In the picture you can see:

All 3 charts when NY opened this morning show us as follows:
Price was bellow the 200 EMA (so we were in a downtrend)
Buy signal was given about 20 mins after the NY opened:
8 EMA turned blue
Super Trend histogram turned blue

When to exit the trade and cash it:
Remember that we were trading against the Trend, so all caution on deck
1. When price touched the Monthly pivot about 90 mins after NY opened
3. When 8 EMA turned red on 5 min charts

Medium and High impact news 15 and 30 mins after NY opened were extremely good to US Dollar, making price cross the 200 EMA to the upside.
PS. 4 hours after NY opened, we had divergence against us on 5 mins Time Frame, but was not relevant because it was not on Overbought territory.

Any questions i am available
Enjoy your weekend

Thanks Marco for sharing such a good system, but after I loaded your template, there was something wrong with the picture you sent, could you please tell me the setting of your RSX?

You are welcome my friend, here are the settings of both RSX. If they don't show in your charts, I advise you to download the template again and copy the indicators to their folder.

Happy trading

Here are some of the most popular trading charts and their profiles if you want to use them.

The profiles have 3 Time Frames (5-15-30) but you can change them to whatever Time frame you wish according to your own trading style.

Happy trading

If you want to use them, just copy the ones you like to the appropriate folder.

Any questions I am available.
Marco

If you don't know how to decompress those profiles, please search for Winrar, you will find a free edition 6.01 to download. You can use Winrar to Compress, Encrypt, Package and Backup with only one utility.

Thank you your hard work. Let's see and example. EURUSD Profile.
"EURUSD Smashing Potatoes" folder have to copy to Profiles.

1- Decompress the profile you want to use (eur/usd) with Winrar software.
2- Copy the profile folder (eur/usd) to profiles folder in MT4 like I showed in a post earlier.
3- Restart MT4

Any doubts please don't hesitate to ask

Happy trading