Step RSI Indicator

Step RSI Indicator

Step RSI Indicator For MT4 helps traders eliminate false forex reversal signals of classic RSI indicator by using a step and moving average filter

The Step RSI indicator for MT4 is the classic RSI indicator filtered with step and a moving average. Most forex traders get false trading signals during trading with RSI alone. However, the filters of this indicator help forex traders to get quality trading signals and eliminate most of the false starts.

The indicator is easy to interpret as it contains only a RSI line and moving average line. So, it is suitable for new and advanced forex traders. Additionally, traders can plot this indicator on any intraday price chart as well as the long term price charts.

Step RSI Indicator For MT4 Trading Signals

The indicator plots two lines, a blue RSI line and yellow signal line on a separate indicator window. The trading strategy is to enter the markets upon the crossover of these lines after the indicator reaches the overbought or oversold levels. Traders can plot the overbought and oversold levels according to their trading preferences.

If the price reaches the oversold level below 30 and reverses above the 30, we anticipate the price to move higher. So, traders should enter a buy trade with a stop loss below the previous swing low. Additionally, traders should hold the positions and look to book profits at the opposite extreme of overbought level.

A similar trading strategy can be used by traders for a sell trade once the indicator reaches above 70 and reverses.

Conclusion
In summary, the Step RSI indicator for MT4 helps forex traders to filter the trading signals generated by the classic RSI indicator. Best filter to forex traders using RSI for trading and technical analysis.