The Breakout RSI Forex indicator for Metatrader 5 provides laser-sharp trade entry points in both trending and sideways moving currency markets.
This indicator is designed to perform well across any time frame of your preference and suits scalpers, day traders, and swing traders.
A trading signal is generated when the indicator crosses back below the overbought level from above, or back above the oversold level from below.
General Assumptions:
- The market is oversold when the RSI Breakout indicator reaches the 20 value.
- The market is overbought when the RSI Breakout indicator reaches the 80 value.
The indicator includes several inputs and parameters, such as RSI period, overbought level, oversold level, and more.
We recommend gaining confidence in the Breakout RSI indicator by testing it extensively on a demo account before using it with real funds.
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breakout-rsi.mq5 Indicator (MT5)
Chart Example EURUSD H1
The picture below illustrates what the Breakout RSI indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs Using The Breakout RSI Indicator?
Find a simple trading strategy below:
Buy Signal
- Buy condition: The market trend should be pointing upward.
- Initiate a buy market order when the RSI breakout indicator crosses back above the oversold level from below.
- Close the buy transaction when the RSI breakout indicator reaches the overbought level.
- Alternatively, await a sell signal to close the buy trade.
Sell Signal
- Sell condition: The market trend should be pointing downward.
- Initiate a sell market order when the RSI breakout indicator crosses back below the overbought level from above.
- Close the sell transaction when the RSI breakout indicator reaches the oversold level.
- Alternatively, await a buy signal to close the sell trade.
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breakout-rsi.mq5 Indicator (MT5)
Breakout RSI + Dark Inversion Reversal Strategy for MT5
This strategy blends the precision of the Breakout RSI Indicator with the powerful reversal signals of the Dark Inversion Forex Reversal Indicator.
It’s designed to catch breakout trades with confirmation that the move is not a fakeout.
Strategy Concept
The Breakout RSI Indicator detects momentum-driven breakout levels, while the Dark Inversion Indicator filters out weak signals by identifying strong reversal zones.
When both indicators align, the probability of a successful trade increases significantly.
Buy Setup
- Wait for a bullish breakout signal from the Breakout RSI Indicator.
- Check that the Dark Inversion Indicator confirms a bullish reversal (typically with a green or bullish signal).
- Enter a buy trade on the next candle close after both indicators confirm.
- Place a stop-loss just below the recent swing low or below the reversal signal.
- Target at least a 1:2 risk-to-reward ratio, or use dynamic exit based on opposite signals.
Sell Setup
- Wait for a bearish breakout alert from the Breakout RSI Indicator.
- Confirm that the Dark Inversion Indicator shows a bearish reversal zone (typically with a red or bearish signal).
- Enter a short trade after confirmation from both tools.
- Set your stop-loss above the latest swing high or the indicator’s suggested level.
- Target double your risk or use reversal signal exits for trailing.
Recommended Settings and Timeframes
- Timeframes: M15, M30, or H1 for intraday; H4 for swing trades.
- Apply strategy during active market sessions (London and New York).
- Use conservative position sizing until fully comfortable with the system.
This dual-indicator setup is effective for traders who want breakout momentum with built-in reversal validation.
It helps avoid false breakouts and improves entry timing significantly.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the breakout-rsi.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
