The RSI Candles forex indicator for MT4 uses a combination of 4 different RSI values (High, Low, Open and Close) and displays the result as blue and red colored RSI candles in a separate MT4 window below the main chart.
Blue RSI candles suggest the pair is uptrending while red RSI candles suggest the pair is downtrending.
Combine this indicator with other technical tools for more accurate trend predictions.
For example, combine with simple or exponential moving averages.
Price above the moving average? Trade the blue RSI candles and ignore the red RSI candles.
Price below the moving average? Trade the red RSI candles and ignore the blue RSI candles.
The GBP/USD H1 chart below displays the RSI Candles Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the RSI Candles MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when a blue RSI candle appears below the main activity chart.
Place a stop loss 2-3 pips below support or use your own preferred SL method.
Sell Signal: Open a sell trade when a red RSI candle appears below the main activity chart.
Place a stop loss 2-3 pips above resistance level or use your own preferred SL method.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (RSI period) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Copy and paste the RSI_candles.mq4 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)