About the RSI with Flat Indicator
The RSI with Flat Indicator for MT5 helps traders identify precise overbought and oversold market conditions using enhanced RSI logic.
It builds on the traditional Relative Strength Index by adding a smoothing component, making reversals and momentum shifts easier to interpret.
When the indicator reaches or exceeds the 70 level, the market is considered overbought. When it drops to or below the 30 level, the market is considered oversold.
These zones help traders anticipate potential pullbacks or reversals.
This tool can also generate practical trade entry and take profit signals.
For better accuracy, combine it with the 150 EMA to define the dominant trend direction.
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rsiwithflat.mq5 Indicator (MT5)
Key Features
- Identifies overbought conditions above the 70 level.
- Identifies oversold conditions below the 30 level.
- Includes customizable RSI period settings.
- Built-in moving average smoothing with adjustable MA period.
- Selectable MA type for flexibility.
- Custom color options for visual preference.
- Works effectively when combined with the 150 EMA for trend confirmation.
Indicator Chart
The RSI with Flat Indicator highlights 30 and 70 levels while displaying smoothed RSI movements beneath price action.
When the indicator crosses back above 30 during an uptrend confirmed by the 150 EMA, it signals potential buying opportunities.
When it crosses back below 70 in a downtrend, it signals potential selling setups aligned with market momentum.
Guide to Trade with RSI with Flat Indicator
Buy Rules
- Buy condition: price must trade above the 150 EMA, confirming an upward trend.
- The RSI with Flat indicator must cross back above the 30 level from below.
- Enter a buy trade at the candle close after the bullish cross.
- Ensure overall momentum supports continuation rather than a weak bounce.
Sell Rules
- Sell condition: price must trade below the 150 EMA, confirming a downward trend.
- The RSI with Flat indicator must cross back below the 70 level from above.
- Enter a sell trade at the candle close after the bearish cross.
- Ensure overall momentum supports continuation rather than a temporary spike.
Stop Loss
- For buy trades, place the stop loss below short-term support.
- For sell trades, place the stop loss above short-term resistance.
- Adjust position size according to stop distance to maintain consistent exposure.
Take Profits
- Close the buy trade when the indicator reaches or exceeds the 70 level.
- Close the sell trade when the indicator reaches or falls below the 30 level.
- Alternatively, use a predefined reward target that fits your trading plan.
- You may also secure profits at key support or resistance aligned with the 150 EMA trend.
RSI With Flat and Zero Lag Hull Moving Average MT5 Day Trading Strategy
This day trading strategy combines momentum reversals with fast trend confirmation to capture clean intraday moves.
It uses the RSI With Flat Forex Indicator for MT5 together with the Zero Lag Hull Moving Average Indicator for MT5 to create precise entries during active market hours.
The RSI with Flat indicator focuses on key overbought and oversold levels.
The Zero Lag Hull Moving Average acts as a fast trend filter.
Its reduced lag helps track price direction more closely than traditional moving averages, allowing traders to react quickly to intraday changes.
A green line signals bullish conditions, while a violet line confirms bearish pressure.
This strategy is designed for day trading on M5 and M15 timeframes.
It performs best during the London and New York sessions when the market shows consistent movement.
Buy Entry Rules
- Wait for the Zero Lag Hull Moving Average to turn green, confirming bullish direction.
- Look for the RSI line to cross back above the 30 level from below.
- Enter a buy trade after the candle closes with both conditions aligned.
- Place the stop loss below the recent intraday low or just under the Hull line.
- Exit the position when RSI approaches the 70 level or when the Hull line turns violet.
Sell Entry Rules
- Wait for the Zero Lag Hull Moving Average to turn violet, confirming bearish direction.
- Look for the RSI to cross back below the 70 level from above.
- Enter a sell trade after confirmation at candle close.
- Place the stop loss above the recent intraday high or just above the Hull line.
- Exit the trade when RSI drops near the 30 level or when the Hull line switches to green.
Case Study 1: AUD/USD London Session Reversal
During the London session, AUD/USD moved lower and pushed the RSI below the 30 level on the M15 timeframe.
Shortly after, the RSI crossed back above 30, signaling a recovery in momentum.
At the same time, the Hull Moving Average shifted to green, confirming a bullish transition.
A buy position was opened after the candle closed. The stop loss was placed beneath the session low.
Price climbed steadily as buyers stepped in, respecting the Hull line as dynamic support.
As RSI approached the 70 level, the position was exited with a gain of 27 pips.
Case Study 2: USD/CAD New York Session Trend Continuation
In the New York session, USD/CAD was trending downward on the M5 timeframe.
The Hull Moving Average stayed violet, maintaining bearish bias. Price temporarily retraced upward, pushing RSI above 70.
When RSI crossed back below the 70 level, it signaled that the pullback had likely ended.
A sell trade was triggered at candle close. The stop loss was placed just above the retracement high.
The pair resumed its downward move with strong momentum.
As RSI approached the 30 level, profits were secured, capturing 13 pips on the move.
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rsiwithflat.mq5 Indicator (MT5)
FAQ
Why combine the RSI with Flat Indicator with the 150 EMA?
The 150 EMA defines the dominant market trend.
Trading RSI signals only in the direction of the 150 EMA reduces countertrend entries and improves consistency.
What is the purpose of the flat or smoothing feature?
The smoothing component reduces noise and filters minor fluctuations.
This helps traders focus on stronger momentum shifts rather than reacting to every small movement.
Can I modify the RSI and MA settings?
Yes. You can adjust the RSI period, MA period, and MA type to match your trading style.
Faster settings produce more signals, while slower settings provide stronger confirmation.
Is it suitable for all market conditions?
The indicator performs best in trending environments when used with the 150 EMA filter.
During highly ranging markets, signals may appear more frequently and require stricter confirmation.
Summary
The RSI with Flat Indicator provides a practical method for identifying 30 and 70 level reversals with improved smoothing.
It helps traders detect overbought and oversold conditions with greater precision.
When combined with the 150 EMA for trend direction, it becomes a disciplined strategy tool for structured entries and exits.
As with any technical tool, extensive demo testing and realistic expectations remain essential before live trading.
