The Stochastic of RSX indicator for Metatrader 5 is an overbought & oversold technical oscillator composed of the Stochastic and RSX indicator.
RSX is a smoother type of RSI that doesn’t add any lag to the price.
The indicator delivers the best trading results when traded in agreement with the overall market trend.
Spotting overbought and oversold market conditions with this indicator is easy, just adhere to the instructions provided below::
- An overbought market condition occurs when the Stochastic of RSX indicator crosses back above the 90 level.
- An oversold market condition occurs when the Stochastic of RSX indicator falls back below the 10 level.
The indicator includes several inputs and parameters, such as Stochastic period, slowing period, price to use, RSX period, color up, color down, and more.
Before implementing it in live trading, it’s advisable to become familiar with this technical indicator and thoroughly test it on a demo account for an extended period.
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The picture below illustrates how the Stochastic of RSX indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs Using The Stochastic of RSX Indicator?
Find a simple trading strategy below:
- Buy market condition: the pair should be clearly in an uptrend.
- A buy signal is generated when the Stochastic of RSX indicator crosses back above 10 from below.
- Add a stop loss below the most recent swing low level.
- Close the buy transaction for a predetermined profit target that suits your preference.
- Alternatively: await a sell signal to close the buy trade.
- Sell market condition: the pair should be clearly in a downtrend.
- A sell signal is generated when the Stochastic of RSX indicator crosses back below 90 from above.
- Add a stop loss above the most recent swing high level.
- Close the sell transaction for a predetermined profit target that suits your preference.
- Alternatively: await a buy signal to close the sell trade.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the stochastic-of_rsx.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration