RSI Chart Bars is a free mt4 (Metatrader 4) indicator that’s trend-following in nature and it delivers excellent signals for good ROI.
The indicator pops up in the main chart as blue/red colored candlesticks.
The RSI Chart Bars indicator does not repaint the buy/sell candlesticks.
Buy & Sell Trade Example
- Buy the currency pair when the first blue candlestick gets painted on the chart.
- Sell the currency pair when the first red candlestick gets painted on the chart.
The indicator can be used as a standalone trading tool for both trade entry & exit and works equally well for all currency pairs and any other MT4 trading instruments.
Free Download
Download the “rsi chart bars.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the RSI Chart Bars 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 Chart Bars 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 Chart Bars + Major Trend Forex Signal Strategy
This strategy combines the RSI Chart Bars Forex Trend Indicator MT4 with the Major Trend Forex Signals Indicator MT4.
It is designed for day traders seeking early entries in the direction of the major trend while confirming momentum with candlestick signals.
This strategy works best on 15-minute to 1-hour charts and is suitable for major currency pairs as well as active minors.
How It Works
The RSI Chart Bars indicator paints colored candlesticks: blue for a buy opportunity and red for a sell opportunity.
The Major Trend Forex Signals indicator displays the overall trend: “Major Trend: Up” for bullish markets and “Major Trend: Down” for bearish markets.
By waiting for the first candlestick signal to appear in the same direction as the major trend, traders can enter trades aligned with both momentum and trend direction.
This combination filters false signals and increases the likelihood of capturing meaningful intraday moves.
Buy Entry Rules
- The first blue candlestick appears on the RSI Chart Bars indicator.
- The Major Trend indicator displays “Major Trend: Up,” confirming a bullish trend.
- Enter a buy trade at the opening of the next candle after both conditions are met.
- Stop loss is placed a few pips below the recent swing low or below the first blue candlestick.
- Take profit at the next local resistance, or use a trailing stop that follows the last two lows of the trend until the trend reverses.
Sell Entry Rules
- The first red candlestick appears on the RSI Chart Bars indicator.
- The Major Trend indicator displays “Major Trend: Down,” confirming a bearish trend.
- Enter a sell trade at the opening of the next candle after confirmation.
- Stop loss is placed a few pips above the recent swing high or above the first red candlestick.
- Take profit at the next local support, or use a trailing stop that follows the last two highs until the trend reverses.
Advantages
- Combines trend confirmation with momentum-based candlestick signals for higher probability trades.
- Clear visual cues reduce hesitation and make intraday trading straightforward.
- Flexible take-profit options using trailing stops allow capturing extended moves.
- Applicable across multiple currency pairs and timeframes, allowing versatility.
Drawbacks
- The trailing stop method requires attention; not ideal for fully automated trading unless programmed.
- Early candlestick signals may appear just before minor counter-trend corrections.
Example Case Studies
Case Study 1 – EUR/JPY 30-Minute Chart
The first blue candlestick appeared on the RSI Chart Bars indicator, while the Major Trend indicator displayed “Major Trend: Up.”
A buy trade was entered at 128.50, stop loss at 128.35, and a trailing stop was applied following the two most recent swing lows.
The price moved upward, and the trailing stop closed the trade at 129.20, capturing 70 pips in under 4 hours.
This demonstrates how using trend alignment and dynamic take-profit can capture extended intraday moves.
Case Study 2 – GBP/USD 1-Hour Chart
The first red candlestick appeared on the RSI Chart Bars indicator, and the Major Trend indicator displayed “Major Trend: Down.”
A sell trade was opened at 1.3100, stop loss at 1.3120, with a trailing stop following the last two highs.
The trade reached 1.3045 before the trailing stop closed the position, capturing 55 pips.
This shows how combining early candlestick signals with trend confirmation and dynamic take-profit can maximize profit while limiting risk.
Case Study 3 – AUD/CAD 15-Minute Chart
A blue candlestick appeared on the RSI Chart Bars, Major Trend indicated “Up.”
Entered a buy trade at 0.9250, stop loss 0.9235.
Using a trailing stop strategy, the trade closed at 0.9285 for a 35 pip profit within 2 hours.
Strategy Tips
- Always check that the Major Trend indicator matches the candlestick signal before entering a trade.
- Use multiple timeframes to confirm the trend; higher timeframe alignment increases success probability.
- Trailing stops help capture extended trends, but should be adjusted for market volatility and spread.
- Consider combining this strategy with session-specific trading rules (e.g., London open or New York session) for higher intraday momentum.
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Download the “rsi chart bars.mq4” indicator for Metatrader 4
