The Fan RSI indicator for MT4 can be categorized as a momentum trend oscillator that provides buy & sell signals based on RSI + Fan.
The indicator reveals a change in trend at its early stage, before the bigger move occurs.
The Fan RSI indicator can be used in multiple ways.
Buy & Sell Trade Example
- Open a buy position whenever Fan RSI crosses the 50 level bottom-up.
- Open a sell position whenever Fan RSI crosses the 50 level top-down.
The Fan RSI indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors, and exotic) and shows promising results if used correctly.
Free Download
Download the “fan-rsi-indicator.mq4” indicator for MT4
Indicator Chart (GBP/USD H1)
The example chart below displays the Fan RSI MT4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Fan RSI Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: RSI
Does the indicator repaint? No.
Fan RSI + Awesome MT4 Scalping Strategy (MT4)
Introduction
This scalping strategy pairs the Fan RSI (MT4) with the Awesome Oscillator (MT4).
The Fan RSI gives a clear entry when it crosses the 50 level. The Awesome Oscillator confirms momentum, so you avoid slow, choppy moves.
The system targets quick moves on short time frames.
Use 1, 5, or 15-minute charts. The best pairs are liquid majors like EURUSD, GBPUSD, USDJPY, and USDCAD.
Trade during active sessions. The overlap of London and New York is ideal.
This approach is for scalpers who want frequent, defined trades and strict risk control.
It is not for swing traders or investors who want to hold positions for days.
Setup
Attach both indicators to your MT4 chart. Use default settings for Fan RSI and the standard Awesome Oscillator.
Choose a timeframe based on how many trades you want.
M1 for very active scalpers, M5 for a balance, M15 for fewer trades and wider stops.
Buy Entry Rules
- Fan RSI crosses above the 50 level from below. This is the primary trigger.
- Awesome Oscillator must show a green bar above the zero level.
- Enter a market buy on the close of the confirming candle.
- Stop loss: place SL below the most recent local swing low.
- Suggested SL: M1 = 8–12 pips, M5 = 12–20 pips, M15 = 18–30 pips.
- Take profit: first target at 1× risk. Second target at 2× risk for partial exit or trailing.
- Alternative exit: close remaining position when AO turns red or Fan RSI falls back below 55.
Sell Entry Rules
- Fan RSI crosses below the 50 level from above. This is the primary trigger.
- Awesome Oscillator must show a red bar below the zero level.
- Enter a market sell on the close of the confirming candle.
- Stop loss: place SL above the most recent local swing high.
- Suggested SL: M1 = 8–12 pips, M5 = 12–20 pips, M15 = 18–30 pips.
- Take profit: first target at 1× risk. Second target at 2× risk or trail until AO shows a green bar.
- Do not hold trades overnight. This is a pure intraday scalping method.
Advantages
- Clear and simple entries reduce hesitation in fast markets.
- Momentum confirmation from the Awesome Oscillator filters weak moves.
- Short time frames create frequent opportunities.
- Defined stop and take profit rules make risk management easier.
- Works well on major pairs with tight spreads.
Drawbacks
- Many small trades increase transaction costs. Commissions and spreads matter.
- Slippage can hurt results on M1 during volatile news events.
- Not suitable for brokers with wide spreads or high latency.
Case Study 1 — EURUSD 5-Minute Scalping
During a London morning session, the Fan RSI crossed above 50.
The Awesome Oscillator printed a green bar above the zero level.
These two confirmations aligned on the same candle close. Entry was placed at 1.1020.
Stop loss was 12 pips below at 1.1008. First take profit was set at 1.1032 for a 12 pip gain.
Price hit the first target within eight candles. A second partial exit at 2× risk was taken at 1.1044.
The trade delivered 24 pips in total. The rules were followed, and risk was respected.
Case Study 2 — GBPUSD 1-Minute Quick Flip
At the New York open, the Fan RSI dipped then crossed up through 50.
The Awesome Oscillator printed a rising green bar above 0.
Entry at 1.2575 with SL at 1.2567, eight pips risk. TP1 at 1.2583 was hit within six minutes.
AO turned red shortly after, so the remaining position was closed.
The net result was 6–8 pips after spread and commission.
The trade fit the scalping plan and preserved capital when the momentum faded.
Strategy Tips
- Trade when spreads are low. Avoid trading around major economic news.
- Use a fixed fraction of account risk per trade. Typical risk is 0.5% to 1% of equity.
- Keep lot sizes small on M1 and M5 to control slippage and drawdown.
- Take partial profits to lock gains and trail the remainder with a break-even stop once price moves 1× risk in your favor.
- Backtest this strategy with your broker’s spreads and execution model before trading live.
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Download the “fan-rsi-indicator.mq4” indicator for Metatrader 4
