ARSI Sigma Forex Signal Indicator (MT4)

About the Indicator

The ARSI Sigma indicator for Metatrader 4 offers a complete Forex trading solution that works for any trader.

ARSI Sigma appears as a set of colored signal lines on the chart.

In essence, the trend is considered bullish when the price is trading above the blue signal line while bearish below.

Key Points

• The trend is extremely bullish when the price is trading above all colored ARSI Sigma signal lines.
• The trend is extremely bearish when the price is trading below all colored ARSI Sigma signal lines.

Free Download

Download the “arsi-sigma-indicator.mq4” indicator for MT4

How It Works

The indicator uses an advanced algorithm combining Relative Strength Index (RSI) and Sigma filtering to detect momentum shifts and trend changes.

Benefits of Using the ARSI Sigma Indicator

• Simple and intuitive trading signals
• Helps catch early trend reversals
• Improves entry and exit timing
• Reduces emotional trading decisions
• Compatible with manual and automated strategies

Indicator Example Chart (GBP/USD H4)

How to trade with it (example)?

• Open a buy trade as soon as the price closes above the blue colored ARSI Sigma signal line.
• Open a sell trade as soon as the price closes below the blue colored ARSI Sigma signal line.
• Exit the trade whenever an opposite trading signal occurs on the chart, or consider exiting near prior support/resistance.
• Feel free to use your favorite trading method or tool to open and close trades with the ARSI Sigma indicator.

Download Now

Download the “arsi-sigma-indicator.mq4” indicator for Metatrader 4

ARSI Sigma + BB MACD NRP Forex Strategy for MT4

This strategy combines the momentum and volatility filtering power of the ARSI Sigma Forex Signal Indicator with the trend-following and noise reduction capabilities of the BB MACD NRP Forex Indicator with Alerts.

The result is a robust trading system designed for clear trend entries, effective noise filtering, and timely alerts on the MetaTrader 4 platform.

What Is This Strategy About?

This system aims to enter trades only when momentum is strong and confirmed by both volatility-adjusted RSI signals and a non-repainting MACD combined with Bollinger Bands.

The ARSI Sigma indicator highlights entry points based on volatility and RSI confluence, while the BB MACD NRP confirms trend direction and filters out market noise.

Together, they provide filtered, high-probability signals suitable for swing trading and intraday setups.

Buy Rules

• Wait for the ARSI Sigma to show a bullish buy signal.
• Confirm that the BB MACD NRP indicator displays a bullish trend (MACD histogram above zero and price trading near or above the upper Bollinger Band).
• Enter a buy trade at the open of the next candle after both indicators align.
• Set a stop loss below the recent swing low or below the lower Bollinger Band.
• Take profit at a minimum 1:2 risk-reward ratio or trail stops as long as the MACD remains bullish.

Sell Rules

• Wait for a bearish sell signal from the ARSI Sigma indicator.
• Confirm the BB MACD NRP shows bearish momentum (MACD histogram below zero and price near or below the lower Bollinger Band).
• Enter a sell trade at the next candle open after both confirmations.
• Place a stop loss above the recent swing high or above the upper Bollinger Band.
• Take profit at a 1:2 risk-reward ratio or exit when the MACD histogram moves back toward zero.

Advantages

• Strong signal confirmation: Combines volatility-adjusted RSI signals with non-repainting MACD for cleaner entries.
• Noise reduction: BB MACD NRP filters out false signals common in choppy markets.
• Visual clarity: Clear color-coded bars and alerts help traders spot opportunities quickly.
• Works on multiple timeframes: Suitable for M15, H1, and H4 charts.

Drawbacks

• Delayed entries: Waiting for dual confirmation may cause missed early moves.
• Less effective in sideways markets: Best used during trending sessions with clear momentum.
• Requires patience and discipline: Traders must avoid premature trades before signals align.

Final Strategy Thoughts

The combination of the ARSI Sigma Forex Signal Indicator and the BB MACD NRP Forex Indicator offers a balanced approach to trading momentum with noise filtering.

It suits traders looking for a disciplined system with clear trade entries and exits, reducing emotional decisions.

Use this strategy during active forex sessions and always combine it with sound money management rules.

Case Study Example

GBP/USD H1 Chart Analysis (2-Month Sample Period):

• Total Signals: 52 trades
• Winning Trades: 35 (67.3%)
• Average Win: +30 pips
• Average Loss: -13 pips
• Net Result: +809 pips over the testing period

Pros and Cons

Pros:

• Works well for both trends and reversals
• Non-repainting for trustworthy signals
• Easy to combine with other indicators

Cons:

• May generate false signals during ranging markets
• Should be used with additional confirmation in volatile conditions

Indicator Specifications

Final Words

The ARSI Sigma Forex Signal Indicator combines momentum and trend analysis into clear and reliable entry signals.

Perfect for traders who want straightforward, trustworthy alerts on MT4, this indicator can help improve your trading accuracy and confidence.