RSI MA Oscillator Metatrader 4 Forex Indicator
The RSI MA Oscillator MT4 indicator is composed of the Relative Strength Index (RSI) indicator and a moving average.
The indicator oscillates (thick red line) between two extreme values, 0 and 100, in a separate Metatrader 4 window.
In order to create a real forex system, the RSI MA oscillator needs to be traded in conjunction with a trend following indicator such as the 100 SMA, 50 EMA, Bollinger Bands,…
This creates a buy on dips and sell on rallies forex trading system!
How it works
- The trend following indicator will show us the overall trend
- Only trade oversold and overbought signals from the RSI MA oscillator in the direction of the overall trend
In an up trending market, wait for oversold oscillator signals (around the zero level) and ignore the overbought oscillator signals.
Vice versa, in an down trending market, wait for overbought oscillator signals (around the 100 level) and ignore the oversold oscillator signals.
The default RSI period is set to value 14 but can be changed from the indicator’s inputs tab.
The GBP/USD Hourly chart below displays the RSI MA Oscillator Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the RSI MA Oscillator MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade position when the RSI MA Oscillator crosses back above the 20 level from below and the overall trend is up.
Sell Signal: Open a sell trade position when the RSI MA Oscillator crosses back below the 80 level from above and the overall trend is down.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (RSI 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 rsi-ma-indicator.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)