The RSI Slope Divergence indicator for Metatrader 5 can be used as a buy on dips and sell on rallies trading system in trending markets.
The trade setup is easy and consists of two parts: linear regression channel and RSI slope divergence channel.
The trading idea:
- Buy a dip in the market trend when the linear regression channel is sloping up.
- Sell a rally in the market trend when the linear regression channel is sloping down.
- The RSI provides the exact entry point for both buy & sell trade setups.
The indicator contains the following inputs and parameters: RSI period (14), price, linear regression period, linear regression channel width, colors, style.
Make yourself familiar with this technical indicator and test it first on a demo account.
Remember to have realistic expectations, performance will vary depending on market conditions (trending markets, sideways markets, etc.).
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The following chart shows how the RSI Slope Divergence indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The RSI Slope Divergence Forex Indicator?
Find a simple trading example below:
- A buy signal is given when the regression channel is sloping up (bullish) and RSI touches the lower channel line in the bottom chart.
- Open a long trade and set a stop loss 3 pips below short-term support.
- Close the buy trade for a fixed take profit target of your preference.
- A sell signal is given when the regression channel is sloping down (bearish) and RSI touches the upper channel line in the bottom chart.
- Open a short trade and set a stop loss 3 pips above short-term resistance.
- Close the sell trade for a fixed take profit target of your preference.
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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 Rsi slope divergence.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