The RSI Slope Divergence indicator for Metatrader 5 can be used as a buy on dips and sell on rallies trading system in trending markets.
The trade setup is easy and consists of two parts: linear regression channel and RSI slope divergence channel.
The trading idea:
- Buy a dip in the market trend when the linear regression channel is sloping up.
- Sell a rally in the market trend when the linear regression channel is sloping down.
- The RSI provides the exact entry point for both buy & sell trade setups.
The indicator contains the following inputs and parameters: RSI period (14), price, linear regression period, linear regression channel width, colors, and style.
Make yourself familiar with this technical indicator and test it first on a demo account.
Remember to have realistic expectations, performance will vary depending on market conditions (trending markets, sideways markets, etc.).
Free Download
Rsi slope divergence.mq5 Indicator (MT5)
Chart Example
The following chart shows what the RSI Slope Divergence indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The RSI Slope Divergence Forex Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when the regression channel is sloping up (bullish) and RSI touches the lower channel line in the bottom chart.
- Open a long trade and set a stop loss 3 pips below short-term support.
- Close the buy trade for a fixed take profit target of your preference.
Sell Signal
- A sell signal is given when the regression channel is sloping down (bearish) and RSI touches the upper channel line in the bottom chart.
- Open a short trade and set a stop loss 3 pips above short-term resistance.
- Close the sell trade for a fixed take profit target of your preference.
