The Stochastic RVI Levels Metatrader 5 forex indicator is a technical tool that was originally introduced by John Ehlers.
The use of the stochastic RVI trigger by Ehlers is to enhance its signaling buy/sell capabilities instead of deploying some fixed levels crossing.
The main line of the Stochastic RVI Levels indicator alternates its color between orange red, medium sea green and gray, while adopting the color changes as signal.
In order for the Stochastic RVI Levels indicator to adequately filter out false signals and introduce a neutral state, the indicator uses self-adjusting levels instead of a trigger level.
The EUR/JPY H1 chart below displays the Stochastic RVI Levels Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending line of the Stochastic RVI Levels Metatrader 5 forex indicator changes to medium sea green.
Sell Signal: Go short when the descending line of the Stochastic RVI Levels Metatrader 5 forex indicator turn orange red.
Exit buy trade: Close all buy orders if while a bullish trend is running, the line of the Stochastic RVI Levels indicator turns orange red.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the line of the Stochastic RVI Levels indicator turns medium sea green.
Tips: When the line of the Stochastic RVI Levels indicator turns gray from a medium sea green or orange red color, it indicates weak bullish or bearish sentiments respectively.
Scalpers can use this piece of information as a pointer to sessions in the market where volume is low, hence the need for them to stay off.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (RVI period, Levels period), 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 Stochastic RVI lvl.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)