The RSI Candle Trend Forex indicator for Metatrader 4 delivers accurate candlestick signals and works on the RSI trading principle.
The indicator pops up in the main chart as green/red colored trend signal candlesticks that can be used as a standalone trading tool for both trade entry and exit.
RSI Candle Trend does not repaint the candlesticks.
Buy & Sell Trade Example
- Buy the currency pair when the first red candlestick gets painted on the chart.
- Sell the currency pair when the first green candlestick gets painted on the chart.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “RSI Candle OverBought-Sold.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the RSI Candle Trend 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 RSI Candle Trend 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 Candle Trend + Candle Trend Direction Forex Day Trading Strategy
This strategy combines the RSI Candle Trend Indicator MT4 with the Candle Trend Direction Indicator MT4.
It is designed for day traders looking to enter trades early in a trend while confirming market direction using a visual dashboard.
This strategy works best on 15-minute to 1-hour charts and is suitable for major and minor currency pairs.
How It Works
The RSI Candle Trend indicator generates candlestick signals: a red candle appears when a buy opportunity arises, and a green candle appears when a sell opportunity arises.
This may seem counterintuitive, but it follows RSI trend momentum rules.
The Candle Trend Direction indicator displays a mini dashboard on the chart that confirms the trend: a green dashboard shows a buy trend on the selected timeframe, and a red dashboard shows a sell trend.
By combining the candlestick signals with dashboard confirmation, traders can filter false entries and align with the broader trend.
Buy Entry Rules
- The RSI Candle Trend indicator paints the first red candlestick.
- The Candle Trend Direction dashboard is green for the chosen timeframe, confirming a bullish trend.
- Enter a buy trade at the opening of the next candle after confirmation.
- Place a stop loss below the recent swing low or the low of the signal candle.
- Take profit set at the next resistance level or a 1:2 risk-to-reward ratio.
Sell Entry Rules
- The RSI Candle Trend indicator paints the first green candlestick.
- The Candle Trend Direction dashboard is red for the chosen timeframe, confirming a bearish trend.
- Enter a sell trade at the opening of the next candle after confirmation.
- Place a stop loss above the recent swing high or the high of the signal candle.
- Take profit set at the next support level or a 1:2 risk-to-reward ratio.
Advantages
- Clear visual signals for both entry (candlestick) and trend direction (dashboard) make it easy to interpret.
- Combines early trend detection with trend confirmation, reducing the chance of false signals.
- Works on multiple timeframes, allowing flexibility for day trading.
- Suitable for major and minor currency pairs.
Drawbacks
- Dashboard confirmation sometimes lags slightly, potentially causing missed optimal entries.
- Requires monitoring price action closely to catch the first signal candle.
Example Case Studies
Case Study 1 – EUR/USD 30-Minute Chart
The first red candle appeared on the RSI Candle Trend indicator, and the Candle Trend Direction dashboard was green.
A buy trade was entered at 1.1250, stop loss at 1.1235, and take profit at 1.1300 (a 1:2 risk-to-reward ratio).
The trend continued upward, and the trade reached the target within 3 hours.
Case Study 2 – GBP/JPY 1-Hour Chart
The first green candle appeared on the RSI Candle Trend indicator, and the dashboard was red.
A sell trade was opened at 149.20, stop loss at 149.60, and take profit at 148.20.
The market moved in the expected bearish direction, reaching the target in 5 hours.
Case Study 3 – AUD/USD 15-Minute Chart
A red candle appeared, and the dashboard confirmed green for the buy trend.
Trade entry at 0.6755, stop loss at 0.6745, take profit at 0.6780.
Quick upward momentum allowed the trade to hit the target within 2 hours, demonstrating effective early trend capture.
Case Study 4 – USD/CAD 30-Minute Chart
A green candle appeared, with a red dashboard confirming the bearish trend.
Sell trade entered at 1.3605, stop loss at 1.3620, take profit at 1.3565.
The trade reached the target in under 4 hours, showing that combining the candlestick signal and dashboard provides reliable entries for day trading.
Strategy Tips
- Always check the dashboard trend confirmation before acting on the first signal candle.
- Use multiple timeframes to confirm the overall trend; the dashboard should match the direction of higher timeframes for stronger trades.
- Adjust stop loss and take profit based on volatility; tighter markets require smaller targets and tighter stops.
- Consider scaling in smaller positions if the first candle is confirmed, but market momentum is weak.
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Download the “RSI Candle OverBought-Sold.mq4” indicator for Metatrader 4
