The flattening characteristic of a traditional RSI limits its usefulness.
Such is the case when the periods of the RSI gets assigned to bigger values, which leads to the “flattening” of the RSI.
The phenomena is dependent on the length of the RSI, and demands that only a certain range of values for the RSI is worth using.
However, the idea behind the RSI Floating Levels Signals Metatrader 5 custom indicator is to eliminate the flattening flaw by allowing usable values even on longer lengths (floating levels), thus giving new life to the good old RSI.
Evidently, one is able to use longer period RSI values on the RSI Floating Levels Signals MT5 forex indicator without losing its signals as witnessed on the basic RSI.
The EUR/CAD H4 chart below displays the RSI Floating Levels Signals Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the dark gray line of the RSI Floating Levels Signals Metatrader 5 forex indicator surges above the pale violet red dotted line (prior to being in the oversold region or misty rose colored zone).
Sell Signal: Go short when the dark gray line of the RSI Floating Levels Signals Metatrader 5 forex indicator dips below the lime green dotted line (prior to being in the overbought region or lavender colored zone).
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dark gray line of the indicator breaks below the dim gray middle dotted line after breaching it or breaks below the lime green dotted line following its breach.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the dark gray line of the indicator breaks above the dim gray middle dotted line after breaching it or breaks above the pale violet red dotted line following its breach.
Tips: The RSI Floating Levels Signals Metatrader 5 forex indicator is an efficient tool that spots overbought/oversold market sessions, as such, just about any trader can incorporate this tool into their trade setup.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Rsi period, Rsi method, Floating levels period, Up level %, Down level %, Smoothing period, Smoothing phase), 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 rsi_floating_levels_2.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)