Metatrader 4 Tip 10 – How to use the Forex Indicator RSI

On the last tip, we saw how to add sound alerts to Metatrader 4. Today, we will focus in the use of the Forex Indicator RSI, part of the Indicators on MT4

The Technical Analysis Forex Indicator, RSI (Relative Strength Index), compares the magnitude of recent wins with recent losses to determine conditions of OB/OS in the Forex market.

How to add the Forex Indicator RSI on Metatrader 4

Add the Forex Indicator RSI on MT 4

The parameters for this indicator are.

Parameters for RSI Indicator

Levels for RSI Indicator

We generally use 14 periods and the levels of 30 and 70

When the indicator is above the level of 70, we say that the pair is in Overbought (OB). When it is below the level of 30, we say that the pair is in OverSold (OS).

In this graph we can see two entry points (yellow area) when the indicator was close to the level 30 (OS), so we will take Long positions. The other entry point is close to the level 70 (yellow area) and we

The blue areas tell us that the price is breaking the 50 level, and that may indicate short positions (if it breaks downwards) or long positions (if it breaks upwards.

The Forex Indicator RSI on MetaTrader 4