RSI is a very popular technical forex indicator used in many forex strategies and systems.
The Breakout RSI indicator is based on the traditional RSI indicator and provides traders with bullish and bearish breakout signals.
The indicator tells you whether the pair is trending up or down and displays the breakout price to go either long or short (see image below).
In order to maximize profits, confirm the breakout trade with price action or other technical tools.
The breakout RSI can be used to trade short-term breakouts off the 5-minute charts (good for scalping) or more significant breakouts off the 1-hour, 4-hour charts and daily charts (good for day trading and swing trading).
The EUR/USD 1-Hour chart below displays the Breakout RSI Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Breakout RSI MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a buy trade when price touches the “breakout long” price.
Sell Signal: Initiate a sell trade when price touches the “breakout short” price.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: 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 breakout-rsi-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)