RSI Colored Signals Metatrader 4 Forex Indicator
The RSI colored signals indicator for MT4 is an easy to follow RSI based trading indicator with buy/sell alerts painted on the chart.
The indicator draws a green oversold and red overbought RSI signal line in a separate trading window.
Moreover, this RSI indicator draws buy and sell RSI arrows directly one the chart.
You can change the default RSI overbought (70) and oversold (30) values to whatever you wish.
- A green arrow on chart represents an RSI buy signal (oversold).
- A red arrow on chart represents an RSI sell signal (overbought).
This RSI indicator works great in a range-bound market but will draw false signals in a trending market.
Use the indicator together with moving averages (SMA or EMA) and trade RSI signals in the direction of the underlying trend.
Combine with the 200 SMA, 100 EMA,…
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
The EUR/JPY H1 chart below displays the RSI Colored Signals Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the RSI Colored Signals MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy market order when the RSI Signals indicator paints a green buy arrow on the chart. Make sure the underlying trend is upward.
Place a stop loss below support or use your own preferred SL method.
Sell Signal: Open sell market order when the RSI Signals indicator paints a red sell arrow on the chart. Make sure the underlying trend is downward.
Place a stop loss above short-term resistance or use your own preferred SL method.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (RSI period, price type, time frame, overbought level, oversold level, show arrows on chart, alerts)Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: RSI signals
Copy and paste the Color RSI with allert.mq4 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)