About the TRSI Oscillator indicator
The TRSI Oscillator indicator for MetaTrader 4 is composed of EMA, SMA, and RSI.
This tool includes three key trading levels to monitor: 30, 50, and 70.
An indicator reading at or below the 30 level is considered oversold.
A reading that crosses above the 50 level from below is considered bullish, while a reading that crosses below the 50 level from above is considered bearish.
An indicator reading at or above the 70 level is considered overbought.
Like most other trading oscillators, TRSI should be used together with a trend-following indicator such as a simple moving average, ADMI, or an exponential moving average.
Always trade in the direction of the underlying trend as defined by the trend-following indicator.
When price action is above the trend-following indicator, only trade TRSI oversold signals found at the 30 level or below.
When price action is below the trend-following indicator, only trade TRSI overbought signals found at the 70 level or above.
TRSI offers a wide range of settings for EMA, SMA, and RSI, including periods and applied price options.
These settings can be accessed directly from the indicator’s Inputs tab. Adjust them to fully fit your needs.
TRSI can be used with any trading style, including scalping and day trading.
Free Download
Download the “trsi-indicator.mq4” MT4 indicator
Key Features
- Smooth oscillator line that reduces false signals during choppy markets.
- Dynamic overbought and oversold levels for precise reversal timing.
- Responsive tracking of price momentum across various market conditions.
- Adjustable calculation periods to suit different trading strategies.
- Clear visual representation of trend strength in a separate window.
- Works efficiently across all currency pairs and standard MT4 timeframes.
Indicator Chart
The TRSI Oscillator indicator chart shows the momentum line fluctuating between extreme zones to signal potential market reversals.
You can observe how the line changes direction at key levels to provide early warnings for buy and sell opportunities.
Guide to Trade with the TRSI Oscillator indicator
Buy Rules
- Wait for the TRSI Oscillator indicator to drop below the oversold level.
- Look for the line to turn upward and cross back above the lower boundary.
- Confirm that the price action has formed a support base.
- Enter a long position on the close of the bullish reversal candle.
Sell Rules
- Wait for the TRSI Oscillator indicator to rise above the overbought level.
- Observe the line turning downward and crossing back below the upper boundary.
- Check for price action showing resistance or a bearish rejection.
- Open a short position once the oscillator confirms the downward momentum.
Stop Loss
- Position the stop loss a few pips below the most recent swing low for buy trades.
- Place the stop loss a few pips above the most recent swing high for sell trades.
- Ensure the stop loss accounts for current market volatility and spreads.
Take Profit
- Close the trade when the oscillator reaches the opposite extreme zone.
- Set a profit target at the next major horizontal support or resistance level.
- Use a trailing stop to lock in gains as the trend progresses in your favor.
TRSI Oscillator and Heiken Ashi Signal Cloud Forex Trend Strategy for MT4
This MT4 forex strategy combines momentum reversal timing from the TRSI Oscillator indicator with clear trend direction from the Heiken Ashi Signal Cloud indicator.
The strategy offers a practical way to trade pullbacks within trends by combining momentum exhaustion signals with adaptive exit management based on real market behavior.
The TRSI Oscillator highlights overbought and oversold conditions and confirms when momentum starts to return in the trend direction.
The Heiken Ashi Signal Cloud simplifies trend identification by using color coded candles, helping traders avoid countertrend positions.
This strategy works best on M15, M30, and H1 timeframes.
It is suitable for traders who prefer trend continuation setups with logical pullback entries.
It performs well on major and minor currency pairs with stable volatility.
Buy Entry Rules
- The Heiken Ashi Signal Cloud must display green candles, confirming a bullish trend.
- The TRSI Oscillator must fall below the 30 level, signaling a temporary oversold condition.
- A buy signal is confirmed when the TRSI Oscillator rises back above the 30 level.
- Enter the buy trade at the close of the candle that confirms the oscillator recovery.
- Stop loss is placed below the most recent swing low or below the last bearish Heiken Ashi candle.
- Take profit is placed at the next visible resistance zone or when the Heiken Ashi candles change color from green to red.
Sell Entry Rules
- The Heiken Ashi Signal Cloud must display red candles, confirming a bearish trend.
- The TRSI Oscillator must rise above the 70 level, signaling a temporary overbought condition.
- A sell signal is confirmed when the TRSI Oscillator falls back below the 70 level.
- Enter the sell trade at the close of the candle that confirms the oscillator reversal.
- Stop loss is placed above the most recent swing high or above the last bullish Heiken Ashi candle.
- Take profit is placed at the next visible support zone or when the Heiken Ashi candles change color from red to green.
Advantages
- Aligns momentum reversals with established market trends.
- Encourages disciplined entries after pullbacks rather than chasing price.
- Adaptable to different market conditions and currency pairs.
- Exit logic follows real market structure instead of fixed ratios.
Drawbacks
- Support and resistance identification requires basic chart reading skills.
- Signals may appear less frequently during strong one directional trends.
- Not optimized for very fast scalping on extremely low timeframes.
Case Study 1
On CHFJPY H1 during the London session, the Heiken Ashi Signal Cloud displayed consistent green candles, confirming bullish conditions.
Price retraced modestly and the TRSI Oscillator dropped below the 30 level.
When the oscillator crossed back above 30, a buy trade was opened at candle close.
The stop loss was placed below the recent swing low.
Price advanced steadily and the trade was closed near a resistance area when Heiken Ashi candles turned red, capturing approximately 39 pips.
Case Study 2
On AUDJPY M30 during the New York session, the Heiken Ashi Signal Cloud showed red candles, indicating a bearish trend.
During a corrective move, the TRSI Oscillator climbed above the 70 level.
Once it dropped back below 70, a sell trade was executed.
The stop loss was set above the recent swing high.
Price continued lower and the position was exited near support as Heiken Ashi candles shifted to green, securing around 46 pips.
Strategy Tips
- Use Heiken Ashi candle color changes as dynamic exit signals rather than fixed pip targets.
- Mark key support and resistance zones to guide take profit placement.
- Allow trades to run while candle color remains aligned with the trend.
- Confirm entries only after the candle close to avoid premature signals.
- Focus on liquid trading sessions for smoother price movement.
- Maintain consistent position sizing to manage drawdowns effectively.
Download Now
Download the “trsi-indicator.mq4” Metatrader 4 indicator
FAQ
How does the TRSI Oscillator indicator differ from a standard RSI?
The TRSI Oscillator indicator incorporates additional smoothing algorithms to eliminate the “jagged” movements often seen in a standard RSI.
This makes it easier to identify the actual direction of momentum without being distracted by minor, insignificant price spikes.
Can I change the sensitivity of the TRSI Oscillator indicator?
Yes, you can modify the period settings in the inputs tab.
A lower period makes the indicator more sensitive to price changes, which is ideal for scalping, while a higher period provides a smoother line better suited for swing trading.
Summary
The TRSI Oscillator indicator is a valuable addition to any MT4 setup, offering a cleaner perspective on momentum than many traditional tools.
Its primary strength is its ability to smooth out price action, making overbought and oversold conditions much easier to spot.
This leads to more confident decision-making and better entry timing.
It is an accessible tool for both new and experienced traders due to its straightforward visual signals.
By combining this indicator with price action analysis, you can significantly improve your market timing.
