The Extreme RSI Signals MT4 indicator provides you with momentum buy and sell signals that are based on RSI (Relative Strength Index) extreme trading levels.
In this case, the RSI indicator is used to analyze extreme overbought and oversold market conditions.
- A blue arrow represents an extreme RSI buy signal.
- A red arrow represents an extreme RSI sell signal.
In order to use the extreme RSI signals indicator profitable, trade its signals in agreement with the overall trend.
In an uptrend, trade the extreme oversold RSI signals (blue arrows). Ignore the red arrows from RSI.
In a downtrend, trade the extreme overbought RSI signals (red arrows). Ignore the blue arrows from RSI.
Feel free to experiment with the default RSI extreme period set to 14.
The AUD/USD 4-Hour chart below displays the Extreme RSI Signals Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Extreme RSI Signals MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long when the Extreme RSI indicator draws a blue arrow on the MT4 chart. The overall trend needs to be upward. Place a protective stop-loss a few pips below the previous swing low price.
Sell Signal: Go short when the Extreme RSI indicator draws a red arrow on the MT4 chart. The overall trend needs to be downward. Place a protective stop-loss a few pips above the previous swing high 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: 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 extreme-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)