The FX5 Self Adjusting RSI for MT4 is an oversold/overbought technical indicator that adjusts itself to current market conditions.
It reduces lag significantly!
The indicator consists of two trigger lines (red and green) and a signal line (blue).
- A buy signal will occur whenever the blue signal line crosses back above the green trigger line.
- A sell signal will occur whenever the blue signal line crosses back below the red trigger line.
Typically, RSI type technical indicators work great in sideways markets but will deliver poor results in trending markets.
Therefore, utilize the RSI indicator together with a trend indicator and always trade the RSI signal in the direction of the overall trend.
Avoid counter trend trading.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
The EUR/USD H1 chart below displays the RSI Colored Signals Forex indicator in action.
Basic Trading Signals
Signals from the FX5 Self Adjusting RSI Forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy market order as soon as the blue RSI signal line crosses the green line upwards (oversold) and the overall trend is upwards.
Place a stop loss below support or use your own preferred stop loss placement method.
Sell Signal: Open sell market order as soon as the blue RSI signal line crosses the red line downwards (overbought) and the overall trend is downwards.
Place a stop loss above resistance or use your own preferred stop loss placement method.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (RSI period, deviation, MA method)Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Here you will find other great indicators for mt4 (Metatrader 4).
Copy and paste the FX5_SelfAdjustingRSI_v1_0.mq4 indicator into the MQL4 indicators folder.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)