The Relative Momentum Index Forex Signal for Metatrader 4 is a signal indicator that consists of Momentum, RMI and the Jurik technical indicators.
The indicator is MTF (multiple time frame) enabled, for instance, you can add signals from the H1 chart directly to the M1 chart.
The indicator appears in a bottom chart of the platform as a colored signal line that’s easy to trade, even for beginners.
Key Points
- Buy & sell signal indicator.
- Beginner friendly.
- Can work as a standalone buy/sell indicator.
- Does not repaint the signal line.
Free Download
Download the “relative-momentum-index-mtf-rmi.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below shows the Relative Momentum Index Forex Signal indicator in action.
Basic Trading Signals
Signals from the Relative Momentum Index Forex Signal indicator for Metatrader 4 are easy to interpret and goes as follows:
BUY:
- Open a new buy trade as soon as the green signal line gets drawn on the bottom chart.
- Set a stop loss 1- 3 pips below short-term support.
- Exit the buy trade for a risk-to-reward of 1.5, or wait for an opposite sell trading signal.
SELL:
- Open a new sell trade as soon as the red signal line gets drawn on the bottom chart.
- Set a stop loss 1- 3 pips above short-term resistance.
- Exit the sell trade for a risk-to-reward of 1.5, or wait for an opposite buy trading signal.
Relative Momentum Index + Kaufman Bands MT4 Intraday Forex Strategy
This intraday trading strategy combines the Relative Momentum Index Forex Signal Indicator for MT4 and the Kaufman Bands Indicator for MT4 to create a structured and efficient trading method for day traders.
The Relative Momentum Index (RMI) provides precise entry signals through color-coded changes — the green line represents a buy signal, while the red line indicates a sell signal.
The Kaufman Bands Indicator confirms the market trend with its adaptive band system, where the blue dotted line represents a bullish environment and the yellow dotted line shows a bearish one.
When used together, these two tools filter out false moves and highlight reliable intraday setups in trending conditions.
This strategy is best used on M15 and M30 charts for major pairs such as EURUSD, GBPUSD, and USDJPY.
It is ideal for traders who want to capture intraday swings while maintaining disciplined, rule-based entries and exits.
By aligning the RMI signal with the Kaufman Bands’ trend color, traders can focus only on high-probability setups that align with the main market direction.
Buy Entry Rules
- Wait for the Kaufman Bands dotted line to turn blue, confirming an uptrend.
- Check that the Relative Momentum Index line changes to green, indicating a buy signal.
- Enter a buy trade at the close of the candle that confirms both conditions.
- Set a stop loss just below the lower Kaufman Band or the recent swing low (usually 15–25 pips on M15).
- Set a take profit around 40–60 pips, depending on volatility and pair behavior.
Sell Entry Rules
- Wait for the Kaufman Bands dotted line to turn yellow, confirming a downtrend.
- Check that the Relative Momentum Index line changes to red, signaling bearish momentum.
- Enter a sell trade at the close of the candle that confirms both conditions.
- Set a stop loss just above the upper Kaufman Band or the latest swing high (usually 15–25 pips on M15).
- Take profit around 40–60 pips, or use a 1:2 risk-reward ratio for consistency.
Advantages
- Combines momentum confirmation (RMI) with adaptive trend direction (Kaufman Bands).
- Filters out countertrend trades and focuses only on confirmed setups.
- Simple to read — color-coded visuals make decision-making fast and clear.
- Works well in volatile intraday conditions with clear directional bias.
- Adaptable to multiple timeframes for day trading or short-term swing trading.
Drawbacks
- Less effective in sideways or range-bound markets where the bands flatten.
- Stop losses may be hit prematurely if volatility increases unexpectedly.
Case Study 1 – EURUSD (15-Minute Chart)
During the London session, EURUSD turned bullish as the Kaufman Bands dotted line changed to blue.
At the same time, the Relative Momentum Index line turned green, signaling a buy entry.
A trade was opened at 1.0855 with a 20-pip stop loss and a 45-pip take profit target.
The pair climbed steadily, reaching 1.0900 within two hours, resulting in a +45 pip gain.
Both indicators stayed aligned throughout the move, confirming the strength of the trend.
Case Study 2 – GBPJPY (30-Minute Chart)
Later in the New York session, GBPJPY displayed a strong bearish setup.
The Kaufman Bands dotted line switched to yellow, confirming a downtrend, and the Relative Momentum Index turned red at the same time.
A sell trade was taken at 191.30 with a 25-pip stop loss and 50-pip target.
Within the next 90 minutes, the price dropped to 190.80, reaching the take profit for a clean +50 pip result.
The color coordination between indicators provided a clear and low-stress signal.
Strategy Tips
- Always wait for the Kaufman Bands color to match the RMI signal color before entering a trade.
- Avoid trading when both indicators switch colors repeatedly — this suggests a range-bound market.
- Use major pairs with tight spreads for maximum efficiency.
- Secure partial profits once your trade reaches halfway to the target, and move the stop loss to breakeven to protect gains.
The Relative Momentum Index + Kaufman Bands MT4 Intraday Forex Strategy offers a balanced blend of trend confirmation and momentum-based entries.
With its simple visual cues and strong filtering capability, this method helps traders capture intraday price swings while reducing noise and uncertainty.
When used with proper risk management and patience, it can become a reliable foundation for consistent day trading results.
Download Now
Download the “relative-momentum-index-mtf-rmi.ex4” MT4 indicator
Adjustable Parameters & Settings
Time frame, RMI period, momentum period, Jurik smoothing phase, overbought level, oversold level, colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Supported currency pairs: Any
Trading Platform: Metatrader 4 (MT4)
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Signals
