The Forex RSI Fan indicator for Metatrader 5 transforms the conventional RSI indicator into a powerful buy and sell trading tool by creating an RSI Fan.
The RSI Fan detects overbought and oversold market conditions using the following criteria:
- The market is overbought when the RSI Fan reaches or surpasses the 70 threshold level.
- The market is oversold when the RSI Fan reaches or surpasses the 30 threshold level.
For optimal results, it is advisable to use this indicator in agreement with the overall market trend.
The indicator provides flexibility through customizable settings and parameters, including fan color, period calculation method, number of fan lines, start period, price, and progression.
Make yourself familiar with the Forex RSI Fan indicator and test it first on a demo account before applying it to a live account.
Remember that the indicator’s performance may vary depending on market conditions, so it is essential to maintain realistic expectations.
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The picture below illustrates how the RSI Fan indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The RSI Fan Forex Indicator?
Find a simple trading strategy below:
- Buy condition: the currency pair should demonstrate a clear uptrend (see chart example above).
- Initiate a buy transaction when the RSI Fan indicator turns back above 30 from below.
- Exit the buy trade for a risk to reward ratio of at least 1.5, or hold the buy trade and await a sell signal.
- Sell condition: the currency pair should demonstrate a clear downtrend.
- Initiate a sell transaction when the RSI Fan indicator turns back below 70 from above.
- Exit the sell trade for a risk to reward ratio of at least 1.5, or hold the sell trade and await a buy signal.
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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 ifanrsi.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!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration