The ATM RSI Metatrader 4 forex indicator is an enhanced version of the popular RSI technical indicator.
This version comes with 4 different trading levels (25, 35, 65, 75).
Trading the ATM RSI Metatrader 4 forex is very similar to trading the traditional RSI indicator.
- The indicator deploys two extreme levels, the 25 level and the 75 level
- The 25 level is considered oversold while the 75 level overbought
- The 35 and 65 levels are entry levels to go either long or short
How it works
In uptrending markets, we wait for the RSI to fall back to the 25-35 oversold region to open a buy position.
Similarly, In downtrending markets, we wait for the RSI to rise back to the 65-75 overbought region to open a sell position.
It’s highly recommended to trade the ATM RSI oscillator indicator together with a trend following indicator such as the 75 period EMA or 100 period SMA.
The trend following indicator will show you trend direction and only trade signals from the ATM RSI indicator in the direction of the trend.
Trend up? Trade oversold signals and ignore the overbought signals from RSI.
Trend down? Trade overbought signals and ignore the oversold signals from RSI.
The EUR/USD 1-Minute chart below displays the ATM RSI Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the ATM RSI MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when the ATM RSI indicator falls below the 25 level and then rises back above the 35 level.
Sell Signal: Open sell trade when the ATM RSI indicator rises above the 75 level and then falls back below the 65 level.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (RSI period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the atm-rsi-lido-indicator.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)