RSI Overbought / Oversold Indicator with alerts for MetaTrader 4

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Video Overview of the FX AlgoTrader RSI Overbought / Oversold Indicator

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How to use the RSI Indicator

RSI is a technical momentum indicator which compares recent gains to recent losses. 

RSI attempts to determine overbought and oversold conditions for an asset. 

It is calculated using the following formula: RSI = 100 - 100/(1 + RS) 

RSI is the average of the last x days up closes / Average of the last days down closes.

The chart below shows how RSI for a forex pair ranges from 0 to 100. If the RSI value is greater than 70 the asset in question is considered to be overbought and if the RSI is less than 30 it is considered to be oversold. The FX AlgoTrader RSI Indicator for MT4 allows a trader to receive buy and sell signals when the RSI levels crosses or touches a trader defined high or low RSI value.

A trader using RSI should be aware that large price changes can affect the RSI by creating false buy or sell signals, therefore RSI should be used as a complimentary tool rather than in isolation as a stand alone buy / sell signal generator for MetaTrader 4. A good example of a complimentary indicator to use in conjunction with RSI is a moving average crossover indicator or MACD indicator.

 

RSI Alert Indicator Features

 

The FX Algotrader RSI Crossover Alert Indicator for Metatrader 4 is a hybrid indicator which provides a fully configurable RSI alert system with the added benefit of a Java control interface for very quick parameter changes. The indicator is ideal for short or medium term traders wishing to receive buy / sell signals or alert notifications when the RSI readings are overbought or oversold

The indicator has trader configurable input parameters which provide the following functionality:-

 

RSI Alerts buy / sell signals sent by Email

 

If the 'Email Alerts' toggle button is selected the system will send an RSI buy / sell signal alert email to the address specified in the MT4 email options screen. The email will only be sent when the trader's custom RSI alert conditions are met

Setting RSI Buy/ Sell Signal Alerts in the interface

 

Example RSI Buy / Sell Signal Email

 

RSI Buy / Sell Signal sent by Push Notifications

If traders use mobile MetaTrader 4 platforms they can receive push notifications on their mobile device when their custom RSI alert conditions occur. It is important to note the main MetaTrader 4 system must be running on the trader's desktop/laptop machine for push based notifications to take place.

 

Setting RSI Buy/ Sell signal push notification option in the interface

 

 

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Superior alert capabilities compared to standard MetaTrader 4 indicators

 

FX AlgoTrader Pro Series products all use a Java based alert module which supplies a richer alert experience compared to standard MT4 pop up alerts. Traders can select any wav file held on their local computer. Pro Series tools do not require sound files to be stored in the MT4 sounds folder, the wav files can reside anywhere on the machine (which the user has access rights to) and can also be of longer play duration without effecting system performance. Traditional MT4 indicators clip long duration sound files as soon as an incoming tick is received as the MT4 program thread cannot be slowed or paused.

 

 

 

Total Control over all RSI alert related functions

 

 

 

Convergent/Divergent RSI Crossover Modes

 

Selecting the RSI Crossover Mode

In the screenshots below we can see how the trader can control the exact nature of the RSI crossover alert

Scenario 1: Using 'Touch' RSI Crossover Type and 'Divergent' RSI Crossover Mode, the system would have produced an RSI alert/signal at point A.
Scenario 2: Using 'Touch' RSI Crossover Type and 'Convergent' RSI Crossover Mode, the system would have produced an RSI alert/signal at point B
Scenario 3: Using 'Printed' RSI Crossover Type and 'Convergent' RSI Crossover_Mode, the system would have produced an RSI alert/signal at point C

Crossover Mode Scenarios

It's important to realise oscillators can remain in overbought/oversold territory for some time.

Therefore, having the ability to define the exact nature of the RSO crossover you are looking to monitor can make a big difference to the quality of the trade entry.

 

RSI Alert Indicator Screenshots

 

Control Interface for RSI Alerts Plus Indicator

 

Java based Alerts Module

 

RSI Alert Interface running on top of MetaTrader MT4

 

Line Style and Colour variations

 

RSI Alert Indicator Benefits