Smoothed RSI Forex Signal for Metatrader 4 is a fantastic signal indicator that’s based on RSI + a smoothed digital filter.
The indicator gets displayed as a blue/gray/pink colored oscillator in the bottom window of the trading platform.
Buy & Sell Trade Example
- Open a buy trade position as soon as the indicator starts painting the blue colored line on the chart.
- Open a sell trade position as soon as the indicator starts painting the pink colored line on the chart.
The indicator can be used as a standalone trading tool for both trade entry & exit and works equally well for all currency pairs and any other MT4 trading instrument.
Free Download
Download the “Smoothed RSI.mq4” indicator for MT4
Indicator Chart (EUR/USD H4)
The picture below shows the Smoothed RSI Forex Signal mt4 indicator in action on the trading chart.
After you downloaded and installed the indicator (mq4 or ex4 format) on the MT4 trading platform, it should look like the image as shown above.
Trading Tips:
Utilize your own favorite trade entry, stop loss and take profit method when trading with the Smoothed RSI Forex Signal indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: RSI
Repaint? No.
Day Trading Strategy for MT4: Smoothed RSI Signal + Hull Trend Indicator
This day trading strategy combines the Smoothed RSI Forex Signal Indicator MT4 with the Hull Trend Forex Indicator MT4 to capture intraday market trends with precise entries.
The Smoothed RSI indicator generates signals when the line changes color: blue for buy trades and pink for sell trades.
The Hull Trend indicator confirms trend direction with blue candlesticks for bullish trends and red candlesticks for bearish trends.
Combining both indicators helps traders filter false signals and improve entry accuracy for day trading.
This strategy works best on M15 and M30 charts for day trading and is suitable for major currency pairs like EURUSD, GBPUSD, and USDJPY.
By combining trend confirmation with smoothed momentum signals, traders can capture intraday swings effectively.
Buy Entry Rules
- Check that Hull Trend candlesticks are blue, confirming a bullish trend.
- Wait for the Smoothed RSI line to start painting blue.
- Enter a buy trade at the close of the candle when the blue line appears.
- Set a stop loss below the recent swing low or nearby support level.
- Take profit targets can range between 15–30 pips on M15 charts and 30–50 pips on M30 charts.
Sell Entry Rules
- Check that Hull Trend candlesticks are red, confirming a bearish trend.
- Wait for the Smoothed RSI line to start painting pink.
- Enter a sell trade at the close of the candle when the pink line appears.
- Set a stop loss above the recent swing high or nearby resistance level.
- Take profit targets can range between 15–30 pips on M15 charts and 30–50 pips on M30 charts.
Advantages
- Combines smoothed RSI momentum signals with trend confirmation from Hull Trend candlesticks.
- Provides entry and exit points, reducing decision-making time.
- Works on multiple time frames for flexible intraday trading.
- Helps avoid counter-trend trades and improves overall win rate.
- Suitable for a variety of currency pairs with consistent trends.
Drawbacks
- Requires monitoring charts closely for proper entry timing.
- Spread and slippage can reduce profit potential on smaller M15 moves.
Case Study 1: EURUSD M15 – London Session
EURUSD showed blue Hull Trend candlesticks on the M15 chart, confirming a bullish trend.
The Smoothed RSI line started painting blue at 1.1008.
A buy trade was entered with a stop loss at 1.0995.
Within 40 minutes, price moved to 1.1035, achieving a 27-pip profit.
Case Study 2: GBPUSD M30 – New York Session
GBPUSD displayed red Hull Trend candlesticks on the M30 chart, indicating a bearish trend.
The Smoothed RSI line turned pink at 1.2785.
A sell trade was executed with a stop loss at 1.2810.
Within one hour, price dropped to 1.2745, yielding a 40-pip gain.
Using both indicators together filtered false signals and provided a clear trend-aligned trade.
Strategy Tips
- Focus on major sessions with high liquidity for stronger trend moves.
- Wait for both the Hull Trend candlesticks and Smoothed RSI line to confirm direction before entering.
- Adjust take profit levels based on chart time frame and current volatility.
- Use stop losses based on recent swing points to minimize risk.
By combining the Smoothed RSI MT4 and Hull Trend MT4 indicators, traders can follow the market trend and enter high-probability day trades with clearly defined entries, exits, and risk management.
This approach is effective for capturing intraday swings while staying aligned with the market momentum.
