4 Levels RSI Forex Indicator For Metatrader 4

The 4 levels RSI (Relative Strength Index) MT4 Forex indicator is a great overbought/oversold technical indicator that works on 4 levels.

It’s one of the most widely used technical indicator that works for any financial market, including Forex.

The 4 levels RSI indicator plots 4 levels on the activity chart.

  • The overbought levels include 65 and 75.
  • The oversold levels include 25 and 35.

Don’t use the 4 levels Relative Strength Index indicator on its own! This won’t work in trending markets.

Instead, combine it with a simple trend-following technical indicator.

Combine for example with a simple or exponential moving average to identify the overall trend first.

Then trade the RSI signals in the overall direction of the trend.

  • Overall trend up? Trade the oversold RSI signals between 25 and 35.
  • Overall trend down? Trade the overbought RSI signals between 65 and 75.

Feel free to experiment with the 4 levels RSI indicator period parameter to create faster or slower entry levels.

Download This MT4 Forex Indicator Free

Download the “atm-rsi-lido-indicator.ex4” Metatrader 4 indicator

4 Levels RSI Forex Indicator Chart

Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.

You can apply the indicator to any currency pair and time frame of your preference.

Finding Buy and Sell Triggers With The 4 Levels RSI Forex Technical Analysis Chart Indicator

Below is an example of how to buy and sell currency pairs with this Forex indicator:

Buy Trigger: Open a long trade when the overall trend is up and the 4 Levels RSI indicator turns back above the 35 level from below. 

Place initial stop loss 3 pips below immediate support, or use your own stop loss placement method.

Close the buy trade for a reward/risk ratio of 1.5 or better.

Alternatively, take profit at predetermined profit target level, for example 25 pips on the M5 intraday chart.

Sell Trigger: Open a short trade when the overall trend is down and the 4 Levels RSI indicator turns back below the 65 level from above. 

Place initial stop loss 3 pips above immediate resistance, or use your own stop loss placement method.

Close the sell trade for a reward/risk ratio of 1.5 or better.

Alternatively, take profit at predetermined profit target level, for example 40 pips on the M15 intraday chart.

Download This Forex Indicator Now

Download the “atm-rsi-lido-indicator.ex4” MT4 indicator

Adjustable Parameters

RSI period, colors, width, style.

Usage

The indicator can’t be used as a stand-alone signals indicator.

Combine with:

  • Trend indicators (Moving Average, Bollinger Bands, ADMI,…)
  • Price action methods and techniques

More Info About This Indicator

Tradable Currency pairs: Any

Trading Platform: MT4

Time frames: M1, M5, M15, M30, H1, H4, D1, W1

Indicator Type: RSI

Installation

Copy and paste the indicator in the MT4 indicators data folder.

Then restart the MT4 terminal and attach it to any chart.

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