The RSI Filter Metatrader 4 forex indicator is a technical indicator that is intended to be used as a filter for currency trading.
The indicator is made up of deep sky blue, as well as red vertical bars that are aligned above and below the zero center level respectively.
The varying colors of the vertical bars are used in defining bullish (deep sky blue) and bearish (red) market sentiments.
Furthermore, the indicator checks the state of the RSI, by comparing it to the 30 and 70 oversold/overbought levels.
Based on the breach of these levels, the indicator is able to plot three varying signal states:
- Blue bars represent a bullish trend.
- Red bars represent a bearish trend.
- Blank bars represent a flat market.
The EUR/USD M30 chart below displays the RSI Filter Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the vertical bars of the RSI Filter Metatrader 4 forex indicator gets colored deep sky blue, while being positioned above the zero signal level.
Sell Signal: Go short when the vertical bars of the RSI Filter Metatrader 4 forex indicator gets filled red, while being aligned below the zero center level.
Exit buy trade: Close all buy orders if while a bullish trend is running, the RSI Filter indicator pops up a red vertical bar below the zero signal line.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the RSI Filter indicator puts on display a deep sky blue vertical bar above the zero signal level.
Tips: The RSI Filter indicator can be used with other indicators, and combinations with momentum indicators seems to be more interesting for this indicator.
Try this indicator for scalping, day trading and swing trading purposes.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (PeriodRSI), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the rsi-filter.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)