This indicator is based on Relative Strength Index (RSI) .
You can use the following MT4 indicator (attached bellow) named RSI Trader to check instantly if the market is oversold/overbought/neutral and what the trend is according to the Relative Strength Index indicator and receive alerts whenever any of the above changes for up to ten currencies with a click of a button.
Using the indicator above you can tell
– What the Relative Strength Index has been in relationship to the extreme boundaries for the last 4 periods Overbought (RSI >70 ↑), Oversold (RSI <30 ↓), Neutral (30>RSI>70↔) to check in what extreme condition the markets are.
–What the Relative Strength Index has been in relationship to the trend boundaries for the last 4 periods Up (RSI >50 ↑), Down (RSI <50 ↓) to check in what the Trend is
-Notified by a detailed alert (optional) whenever the Extreme conditions or Trend direction changes and a trading opportunity arises.
↗ for buying
↘ for selling
When you attach the indicator to the chart you get the following options. Default values are selected.
period : Number of periods for calculation
trend bound : Value for which if Relative Strength Index is above Trend is considered to be Up, and if bellow Down
overbought_ bound : Value for which if Relative Strength Index is above market is considered to be Overbought
oversold_ bound : Value for which if Relative Strength Index is below market is considered to be Oversold
Alerts : Whether Alerts to be displayed when Extreme conditions or Trend change
Currency #: Which currency pair to be analysed at position #
Currency #_Alerts: Whether Alerts to be displayed for the particular currency pair
This indicator is also available in Multi Time Frames Version. Check it out here RSI Trader Multi Time Frame Version .