About the RSI with MA Indicator
The RSI with MA Indicator for MT4 is a practical tool that takes the guesswork out of reading market momentum.
Instead of relying on a standard line, this system uses a smoothed oscillator to help you see through market noise and find real turning points.
The RSI with MA indicator for Metatrader is an oscillator that identifies overbought and oversold market conditions.
It is designed to be highly adaptive, meaning the indicator works great in both sideways and trending markets.
By watching the oscillator reach its extreme boundaries, you can identify exactly when a trend has lost its “fuel” and is ready to snap back.
It provides a straightforward way to see if you are buying at a peak or selling at a bottom, helping you maintain a professional edge on any timeframe.
Free Download
Download the “RSI_MA.mq4” indicator for MT4
Key Features
- The indicator appears in a bottom chart window in the form of an easy-to-follow buy/sell technical oscillator.
- It features a fixed scale from 0 to 100 to help visualize extreme market exhaustion.
- The built-in Moving Average component smooths the RSI data to prevent false signals during choppy price action.
- It works effectively across all asset classes, including forex majors, indices, and precious metals.
Indicator Chart
The RSI with MA Indicator chart features a dedicated oscillator window below the main price candles.
The oscillator line fluctuates between the 0 and 100 levels to show the current momentum status.
When the line reaches the very bottom or top of this window, it highlights that the market has reached an extreme state.
By keeping the oscillator separate, you can still clearly see your support and resistance levels on the main chart.
Guide to Trade with RSI with MA Indicator
To achieve the best results with this tool, follow these specific trading rules.
Buy Rules
- Monitor the oscillator window until the signal line reaches the bottom of the range.
- Open a buy trade when the indicator reading is 0 (oversold) and the market is trending up.
- Confirm the entry with a bullish candlestick pattern on the main price chart.
- Ensure the price is currently bouncing off a known support level or trendline.
Sell Rules
- Wait for the oscillator signal line to climb to the very top of the range.
- Open a sell trade when the indicator reading is 100 (overbought) and the market is trending down.
- Verify the signal with a bearish reversal candle at the close of the current period.
- Check that the price is meeting resistance or failing to make new highs on the main chart.
Stop Loss
- For buy trades, place the stop loss a few pips below the recent swing low.
- For sell trades, place the stop loss a few pips above the recent swing high.
- Always keep a consistent risk profile to protect your account from sudden market spikes.
Take Profit
- Exit the trade when the oscillator reaches the opposite extreme level.
- Alternatively, target a 1:2 risk-to-reward ratio based on your initial stop loss.
RSI MA + Zero Lag Moving Average Scalping Strategy for MT4
This MT4 strategy combines the power of momentum and trend detection by using the RSI MA Forex Indicator and the Zero Lag Moving Average Indicator.
It’s designed for short-term traders who want fast and clear entry signals with minimal lag.
The combination filters out false moves and helps traders capture quick profits during intraday sessions.
The RSI MA indicator helps identify overbought and oversold reversals.
When the RSI line crosses back above 20, it signals a potential bullish reversal. When it crosses back below 80, it indicates bearish momentum returning.
The Zero Lag Moving Average then confirms the direction of the trend with smooth, low-lag filtering, ideal for high-volatility scalping conditions.
This setup works best on the M5 and M15 charts, especially during London and New York sessions when price volatility is high.
Traders can use it on major forex pairs like EUR/USD, GBP/USD, and USD/JPY.
Buy Entry Rules
- Wait for the RSI MA line to cross back above the 20 level from below.
- Confirm that the price is trading above the Zero Lag Moving Average line.
- Enter a buy trade as soon as both conditions align on the same candle.
- Place a stop loss 10–15 pips below the recent swing low.
- Set a take profit target of 20–30 pips or close the trade when RSI approaches the 70 zone.
Sell Entry Rules
- Wait for the RSI MA line to cross back below the 80 level from above.
- Confirm that the price is trading below the Zero Lag Moving Average line.
- Enter a sell trade as soon as both signals occur together.
- Place a stop loss 10–15 pips above the recent swing high.
- Set a take profit target of 20–30 pips or close when RSI approaches the 30 zone.
Advantages
- Combines momentum and trend confirmation for more reliable entries.
- Zero Lag MA reacts faster than standard moving averages, reducing delay.
- Simple and quick to execute, ideal for scalpers and intraday traders.
- Works well in volatile market conditions during active trading sessions.
Drawbacks
- Less effective in low volatility or sideways markets.
- Requires strict discipline for stop loss management.
Example Case Study 1
On the EUR/USD M5 chart during the London session, the RSI MA dipped below 20 and then crossed back up at 1.0810.
The Zero Lag MA was trending upward, confirming a bullish bias.
A buy trade was opened at 1.0812 with a stop loss at 1.0798 and a take profit at 1.0840.
The price quickly rose as momentum picked up, hitting the profit target within 40 minutes for a gain of 28 pips.
Example Case Study 2
On the GBP/USD M15 chart, the RSI MA crossed below 80 while the price was clearly below the Zero Lag MA line.
A sell entry was triggered at 1.2625 with a stop loss at 1.2640 and a take profit at 1.2595.
The trade moved strongly downward during the New York session, reaching the target in under an hour for a clean 30-pip win.
The RSI stayed below 50 throughout the move, confirming bearish pressure.
Strategy Tips
- Focus on volatile pairs like EUR/USD, GBP/USD, or XAU/USD during active sessions.
- Always confirm both indicators on the same candle before entering a trade.
- Avoid trading during major economic releases when spreads widen.
- Lock in partial profits after 15–20 pips when trading shorter time frames.
Download Now
Download the “RSI_MA.mq4” indicator for Metatrader 4
FAQ
How does the Moving Average help the standard RSI?
Standard RSI lines can sometimes be very jagged, leading to “head fakes” or premature signals.
By applying a Moving Average to the RSI data, this indicator smooths out those minor fluctuations.
This allows the trader to focus on the overall momentum direction rather than getting distracted by every small price tick.
Can I use this indicator for scalping on the 1-minute chart?
Yes, the RSI with MA works very well for scalping when the market is active.
Traders should look for the 0 or 100 readings during the London and New York session opens.
Because the indicator is lightweight, it updates instantly even on the fastest timeframes without lagging your platform.
Does it matter if the market is ranging or trending?
The indicator is versatile enough to handle both.
In a ranging market, you trade the bounces between 0 and 100.
In a trending market, you use the indicator to find pullbacks within the trend.
This makes it a great all-around tool for different market conditions.
Summary
The RSI with MA indicator for mt4 is an effective technical tool that helps traders stay on the right side of market momentum.
It offers a clear visual representation of when a trend is gaining strength or starting to fade.
This indicator assists in maintaining a professional edge by identifying high-probability entry points that signal trend transitions.
Using it consistently helps in building a more disciplined approach to entries and exits.
