RSI (Relative Strength Index) for Metatrader 4 is one of the most used indicators in Forex for identifying overbought and oversold market conditions.
The indicator pops up a separate MT4 chart window as a colored RSI signal line that moves between 0 and 100.
Interpretation:
- RSI readings over 70 indicate overbought conditions.
- RSI readings below 30 indicate oversold market conditions.
RSI delivers the best trading results when combined with a trend trading indicator or price action methods.
The indicator works equally well on all currency pairs (majors, minors, and exotic) and shows promising results if used correctly.
Free Download
Download the “Relative strength index.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the relative strength index mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method while trading with the relative strength index 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.
RSI + Super Signal Bands MT4 Scalping Strategy
This scalping strategy combines the Relative Strength Index (RSI) MT4 Indicator with the Super Signal Bands MT4 Indicator.
By blending momentum analysis and trend confirmation, this strategy allows traders to enter short-term trades with high probability.
It works best on 1-minute to 15-minute charts, making it ideal for scalpers seeking multiple intraday opportunities.
How It Works
The RSI identifies overbought and oversold conditions.
Readings above 70 suggest the market is overbought and may reverse downwards, while readings below 30 indicate an oversold market and potential upward reversal.
The Super Signal Bands help confirm the trend.
The green line signals a buy trend, and the orange line signals a sell trend.
Combining these tools ensures trades align with both momentum and trend direction.
Buy Entry Rules
- RSI reading is below 30, indicating oversold conditions
- Super Signal Bands show a green line confirming a buy trend
- Enter a buy trade at the next candle after both conditions are met
- Stop loss placed just below the most recent swing low
- Take profit set at 10–20 pips or a 1:1.5 risk-to-reward ratio
Sell Entry Rules
- RSI reading is above 70, indicating overbought conditions
- Super Signal Bands show an orange line confirming a sell trend
- Enter a sell trade at the next candle after both conditions are met
- Stop loss placed just above the most recent swing high
- Take profit set at 10–20 pips or a 1:1.5 risk-to-reward ratio
Advantages
- Clear entry and exit rules make scalping fast and structured
- Combines trend confirmation and momentum to reduce false signals
- Works on short time frames for quick intraday profits
- Simple visual cues from RSI and Super Signal Bands improve decision-making
- Flexible risk management with small stop losses
Drawbacks
- Not suitable for highly volatile news sessions due to quick reversals
- Can generate false signals in sideways or ranging markets
- Requires constant monitoring of the chart during trading hours
- Small pip targets require discipline and fast execution
Example Case Studies
Case Study 1
On the EUR/USD 5-minute chart, the RSI dropped to 28, signaling oversold conditions.
Simultaneously, the Super Signal Bands displayed a green line confirming an upward trend.
A buy trade was entered at 1.0952, with a stop loss at 1.0940 and a take profit at 1.0962.
The trade captured 10 pips in under 15 minutes, illustrating how quickly scalping opportunities can be seized when momentum and trend align.
Case Study 2
On the GBP/USD 1-minute chart, RSI reached 72, indicating overbought conditions.
The Super Signal Bands showed an orange line confirming a sell trend.
A sell trade was opened at 1.2345, stop loss at 1.2355, and take profit at 1.2335.
The trade captured 10 pips within 8 minutes, showing the effectiveness of combining RSI extremes with trend confirmation for short-term profits.
Strategy Tips
- Always check the Super Signal Bands before taking RSI signals to ensure trend alignment
- Use small position sizes since pip targets are short
- Focus on high liquidity currency pairs to avoid slippage
- Avoid trading around major news releases that can cause spikes
- Keep a trading log to track performance and refine timing
Download Now
Download the “Relative strength index.mq4” indicator for Metatrader 4
