The RSI is short for Relative Strength Index, and it is a momentum indicator that gauges the strength of recent changes in price in view of analyzing overbought or oversold conditions.
The traditional RSI indicator indicates readings of 30 or below as oversold conditions, while those of 70 and above indicates overbought conditions.
The RSIFilter Metatrader 5 forex indicator is an enhanced version of the parent RSI indicator, where vertical bars are conditioned to change color in respect to overbought/oversold market conditions.
In this version, if the trend and the candlestick direction match, the colors of the vertical bars are seen as light, if the trend and the candlestick direction mismatch, the vertical bars appear as dark.
The EUR/USD H1 chart below displays the rsifilter Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long at the start of every lime vertical bar of the rsifilter Metatrader 5 forex indicator and sustain such market stance with gray and teal vertical bars mixing in.
Sell Signal: Go short at the start of every magenta vertical bar of the rsifilter Metatrader 5 forex indicator and sustain such market stance with gray and brown vertical bars mixing in.
Exit buy trend: Close all buy orders if while a bullish trend is ongoing, the magenta vertical bar of the rsifilter MT5 fx indicator pops up.
Exit sell trend: Close all sell orders if while a bearish trend is ongoing, the lime vertical bar of the rsifilter MT5 fx indicator pops up.
Tip: Use the rsifilter MT5 forex indicator on a long term trading plan, as they perform best under such scenarios.
This indicator can be used for scalping, day trading and swing trading.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Indicator period, Price, Overbought level, Oversold level), Colors, 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 rsifilter.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)