Color RSI With Alert Indicator

Color RSI With Alert Indicator

Color RSI with alert indicator for MT4 provides forex BUY and SELL trading signals based on overbought oversold RSI levels.

The color RSI with alert indicator for MT4 is a modified version of the classic RSI – Relative Strength Index indicator. The modifications include adding price alerts and BUY and SELL arrow trading signals on the chart. Additionally, the oscillator color has been adjusted to reflect the overbought and oversold market conditions. So, forex traders can use the BUY and SELL arrow signals, alerts, and the oscillator color to trade successfully.

The indicator works well for new and advanced forex traders. Moreover, the indicator works well in all intraday price charts and the daily, weekly, and monthly charts. Additionally, forex traders can download the indicator for free and install it easily.

Color RSI With Alert Indicator For MT4 Trading Signals

The GBPUSD Daily price chart above shows the color RSI with alert indicator for MT4 in action. The indicator displays a Green BUY arrow and a Red SELL arrow trading signal on the chart. Additionally, the oscillator window of the RSI indicator shows the oversold area in Green and the overbought area in Red. Moreover, the oscillator between the oversold and overbought zone is in Gray.

The RSI indicator becomes oversold once the indicator values move below 30. Signaling a potential bullish reversal and displays a Green Buy arrow signal on the price chart. So, forex traders can enter the markets with a BUY position with a stop loss below the previous swing low. The best trading strategy is to book profits at an opposite trading signal or an excellent risk-reward ratio higher than 1:2.

Similarly, if the RSI values move higher than 70 and become oversold, the indicator signals a potential bearish price reversal and shows a Red SELL arrow signal on the chart. So, traders should place a SELL trade with a stop loss above the previous swing high.

Forex technical traders should hold the positions until an opposite trading signal or until the oscillator values move to the overbought area, helping the trader ride the entire trend. However, forex traders may apply additional technical strategies or candlestick patterns to look for a profit booking strategy.

As traders can apply the indicator in all charts, this indicator works well in a top-down technical analysis. So, traders can use the indicator at a higher time frame chart to identify the trend direction. At the same time, using the lower time frame charts shall locate the best entry and exit points.

Conclusion
The color RSI alert indicator for MT4 helps technical forex traders overcome the shortfall of the alerts and arrow trading signals of the classic RSI – Relative Strength Index indicator.

Rex Kalist