The RocketRSI Metatrader 5 custom forex indicator is a modification of the standard RSI and is deployed in spotting cyclical reverses.
John F. Ehlers is the brain behind the RocketRSI MT5 indicator and introduced the concept in the May 2018 edition of Technical Analysis of Stocks & Commodities.
The RocketRSI Metatrader 5 indicator displays two unique input parameters:
Period of the RSI indicator – this needs to be half the dominant cycle period.
For instance, this value is set to a default value of 10 if applied to stocks or stock indexes.
Adjust this number to arrive at a suitable value when deploying to forex pairs.
Smoothing of the indicator – this is the smoothing parameter of the RocketRSI MT5 indicator to control volatile swings.
The value here should be set to be over those of the RSILength.
The RocketRSI Metatrader 5 forex indicator can be interpreted as follows:
If the indicator dips below the -2, it is indicative of a high likelihood of a bullish reversal and as such it is a trigger to go long on the desired pair.
If the RocketRSI MT5 forex indicator surges above the 2 level, it is a sign of a high likelihood of a bearish reversal and as such a trigger to go short.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period of the RSI indicator, Smoothing of the indicator), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: cyclical trends
Copy and paste the RocketRSI.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)