The RSI MA Oscillator MT4 indicator is composed of the Relative Strength Index (RSI) indicator and a moving average.
The indicator oscillates (thick red line) between two extreme values, 0 and 100, in a separate Metatrader 4 window.
In order to create a real forex system, the RSI MA oscillator needs to be traded in conjunction with a trend following indicator such as the 100 SMA, 50 EMA, Bollinger Bands,…
This creates a buy on dips and sell on rallies forex trading system!
How it works
- The trend following indicator will show us the overall trend
- Only trade oversold and overbought signals from the RSI MA oscillator in the direction of the overall trend
In an uptrending market, wait for oversold oscillator signals (around the zero level) and ignore the overbought oscillator signals.
Vice versa, in a downtrending market, wait for overbought oscillator signals (around the 100 level) and ignore the oversold oscillator signals.
The default RSI period is set to 14 but can be changed from the indicator’s inputs tab.
Free Download
Download the “rsi-ma-indicator.mq4” MT4 indicator
Indicator Chart (GBP/USD H1)
The GBP/USD Hourly chart below displays the RSI MA Oscillator Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the RSI MA Oscillator MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open a buy trade position when the RSI MA Oscillator crosses back above the 20 level from below and the overall trend is up.
Sell Signal: Open a sell trade position when the RSI MA Oscillator crosses back below the 80 level from above and the overall trend is down.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
RSI MA Oscillator + X Super Trend Candles MT4 Day Trading Strategy
This MT4 day trading strategy combines the momentum signals of the RSI MA Oscillator with the trend confirmation from the X Super Trend Candles.
The RSI MA Oscillator provides overbought and oversold signals, while the X Super Trend Candles display green candles for bullish trends and red candles for bearish trends.
This strategy is designed for intraday trading on M15 and H1 charts and is suitable for traders seeking structured entry and exit rules during active sessions.
Buy Entry Rules
- The RSI MA Oscillator crosses back above the 20 level from below, signaling a potential bullish reversal.
- X Super Trend Candles show green candles, confirming the overall uptrend.
- Enter a long trade at candle close when both conditions are met.
- Place a stop loss below the recent swing low.
- Take profit at the next resistance level, or close the trade when the RSI crosses back below 70 or candles turn red.
Sell Entry Rules
- The RSI MA Oscillator crosses back below the 80 level from above, signaling a potential bearish reversal.
- X Super Trend Candles show red candles, confirming the overall downtrend.
- Enter a short trade at candle close when both conditions are met.
- Place a stop loss above the recent swing high.
- Take profit at the next support level, or close the trade when the RSI crosses back above 30 or candles turn green.
Advantages
- Combines momentum and trend for higher probability trades.
- Visual candle confirmation from X Super Trend makes trend direction clear.
- Flexible for M15 and H1 intraday trading across major currency pairs.
- Structured stop loss and take profit rules reduce emotional trading decisions.
Drawbacks
- Requires active monitoring during the trading session.
- RSI readings may lag slightly in extremely volatile conditions.
Case Study 1: EUR/USD M15 Buy
EUR/USD was trending upwards according to X Super Trend green candles.
At 10:45, the RSI MA Oscillator crossed back above the 20 level from below, signaling a bullish reversal.
A long trade was entered at 1.10420 with a stop loss at 1.10380.
The trade moved in favor of the trend and reached the target of 25 pips at 1.10420 + 0.0025 = 1.10645.
Trade was closed for a profit of 25 pips when price reached resistance and candles began showing red wicks.
Case Study 2: GBP/USD H1 Sell
GBP/USD was trending downward according to X Super Trend red candles.
At 11:00, the RSI MA Oscillator crossed back below the 80 level from above, signaling a bearish reversal.
A short trade was entered at 1.25300 with a stop loss at 1.25400.
The trade followed the trend and reached the target of 45 pips at 1.25300 − 0.0045 = 1.24855.
The trade was closed for a profit of 45 pips before RSI indicated oversold conditions and candles started turning green.
Strategy Tips
- Trade major pairs such as EUR/USD, GBP/USD, and USD/JPY for better liquidity and lower spreads.
- Combine signals with higher timeframe analysis for trend confirmation.
- Set tight stop losses and manage position size for intraday volatility.
- Use candle confirmation from X Super Trend to validate RSI signals before entering trades.
- Backtest the strategy on each pair to adjust pip targets and stop losses for intraday conditions.
Download Now
Download the “rsi-ma-indicator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (RSI period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Oscillator
