RSO is short for Relative Strength Oscillator and the RSO Metatrader 4 Indicator is an oscillator variant of the traditional RSI indicator.
The indicator has a readable symmetry and is more suitable for comparison.
The levels that are present on the RSO Indicator are plus/minus 20 and plus/minus 50, where the former represents overbought/over levels and the latter depicts extreme-overbought/extreme-oversold regions.
The colored bars that are added on the RSO Indicator are just for clarity sake.
The lime bars are used to illustrate increasing RSO, while the red bar show decreasing RSO.
When the RSO is above +20, the first red bar that pops up reveals a possible change in direction.
The USD/CAD M15 chart below displays the RSO Indicator Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the histograms (red & lime) of the RSO Indicator Metatrader 4 forex indicator gets aligned above the zero center line.
Sell Signal: Go short when the histograms (red & lime) of the RSO Indicator Metatrader 4 forex indicator gets positioned below the zero center level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dodger blue curve of the RSO Indicator dips below the plus 20 level after hovering above it.
Exit sell trade: Close all sell orders if while a bearish trend is running, the dodger blue curve of the RSO Indicator breaks above the minus 20 level after staying below it.
Tips: There are sessions where the RSO Indicator fails to break above/below the plus/minus 20 levels respectively, it is okay to also exit orders when the dodger blue line dips below or breaks above the zero center line.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (RSO Period), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | oscillator
Copy and paste the rso-indicator.ex4 indicator 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)