The Cutler RSI Metatrader 5 forex indicator is an RSI version that is based on a simple moving average, exponential moving average, smoothed moving average or linear weighted moving average.
The original idea of the Relative Strength Index still holds i.e. the ability to gauge overbought or oversold market conditions, which is done with the help of the marked extreme levels of > 80 (overbought region) and < 20 (oversold region).
The formula that defines the Cutler RSI Metatrader 5 custom indicator is detailed below:
Cutler’s RSI = 100.0 – 100.0 / (1 + P/N)
P = MA(pos, Period, Method)
N = MA(neg, Period, Method)
The GBP/USD H1 chart below displays the Cutler RSI Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the forest green line of the Cutler RSI Metatrader 5 forex indicator breaks above the 20 signal level.
Sell Signal: Go short when the forest green line of the Cutler RSI Metatrader 5 forex indicator breaks below the 80 signal level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the forest green line of the Cutler RSI Metatrader 5 forex indicator breaks above the 80 level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the forest green line of the Cutler RSI MT5 forex indicator breaks below the 20 level.
Tips: The Cutler RSI Metatrader 5 forex indicator is suitable for scalping, as well as medium-term trading and traders can adopt inputs parameter settings that suits them.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Method, Applied price, Overbought, Oversold), 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 Cutler_RSI.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)