The RSI composite signals indicator for MT4 works on the RSI (Relative Strength Index) principle.
This RSI version fluctuates between 1.1 (overbought) and 0 (oversold) values and consists of a dual colored signal line.
- A blue RSI composite signal line represents a buy signal.
- A brown RSI composite signal line represents a sell signal.
The RSI composite indicator does its analysis on the current time frame or any other time frame of your choice.
The time frame option can be accessed from the indicator’s inputs tab (choose from M1 up to monthly).
It’s recommended to combine RSI type technical indicators with a trend following indicator.
Then trade RSI composite signals in the direction of the underlying trend as follows:
- Trade the blue RSI composite buy signal line when the underlying trend is up.
- Trade the brown RSI composite sell signal line when the underlying trend is down.
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 Composite Signals Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the RSI Composite Signals MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when the RSI composite signal line changes its color from brown to blue.
Place a stop loss below short-term support or use your own preferred SL method.
Sell Signal: Open a sell trade when the RSI composite signal line changes its color from blue to brown.
Place a stop loss above short-term resistance or use your own preferred SL method.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (time frame to use, RSI calculation period, RSI calculation depth, price to use, alerts)Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: RSI signals
Copy and paste the Composite Rsi 1.9.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)