The RSX Indicator is a very smooth Metatrader 4 technical indicator that permits more accurate analysis of price, helping users avoid currency trades that would have been entered prematurely.
It is said that once a trader begins to use the RSX Indicator, they may never apply the traditional RSI again.
The RSX Indicator delivers more accurate buy and sell signals, meaning traders can set tighter stops and more significant thresholds.
The indicator displays green, red, and gold signals within its indicator window.
Traders can allow the RSX Indicator to run a bit faster without risking degradation from excessive market noise.
This will permit the user to attain prompt alert triggers.
Deploy RSX for scalping, day trading, and swing trading purposes.
Free Download
Download the “rsx-indicator.ex4” MT4 indicator
Indicator Chart (GBP/USD H1)
The GBP/USD H1 chart below displays the RSX Indicator Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the red buy signals of the RSX Indicator Metatrader 4 forex indicator pop up on the 50.00 center level.
Sell Signal: Go short when the green sell signals of the RSX Indicator Metatrader 4 forex indicator are displayed on the 50.00 center level.
Exit buy trade: Close all buy orders if while a bullish trend is running, the RSX Indicator displays a green signal.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the RSX Indicator displays a red signal.
Tips: The gold colored signal that is intermittently displayed shows sessions of indecision, and should be traded along when they pop up after a red/green signal.
RSX + Free Forex Scalping Indicator MT4 Strategy (M1 & M5)
This scalping strategy uses the RSX Buy Sell Signal Indicator together with the Free Forex Scalping Indicator MT4.
The RSX indicator gives a quick view of trend direction via a histogram: green for buy trend and red for sell trend.
The scalping indicator gives entry signals: a green histogram indicates a buy signal, and a red histogram indicates a sell signal.
On fast charts like M1 and M5, combining them helps you enter trades in the direction of the trend with a timely trigger.
This strategy is best suited for active traders comfortable with quick execution.
It works well on major and popular currency pairs with good volatility and low spreads.
The short time frames help capture small moves while limiting exposure.
Buy Entry Rules
- RSX histogram must be green (indicating buy trend).
- Free Forex Scalping Indicator histogram must turn green (buy signal) on the M1 or M5 chart.
- Enter long when both conditions occur.
- Stop loss is placed a few pips below the recent swing low (for example, 5–8 pips depending on pair volatility and spread).
- Take profit set at approximately 2 to 3 times the stop loss (for example, 10–15 pips), or watch price action and exit when momentum slows, or trend weakens.
Sell Entry Rules
- RSX histogram must be red (indicating sell trend).
- Free Forex Scalping Indicator histogram must turn red (sell signal) on the M1 or M5 chart.
- Enter short when both conditions align.
- Stop loss is placed a few pips above the recent swing high (for example, 5–8 pips).
- Take profit set at roughly 2 to 3 times the stop loss (for example, 10–15 pips), or close manually when momentum fades.
Advantages
- Clear trend direction thanks to the RSX filter.
- Fast and precise entries from the scalping indicator.
- Simple rules that reduce hesitation and overthinking.
- Works well on liquid pairs with tight spreads.
Drawbacks
- Scalping requires attention because signals form quickly.
- Spreads can reduce profit on pairs that are not very liquid.
- Needs fast order execution for best results.
Case Study 1: EURUSD M5
During the European session on EURUSD M5, the RSX histogram turned green, indicating a bullish trend.
Shortly after, the scalping indicator histogram turned green. A long position was entered.
Stop loss was placed 6 pips below the recent swing low.
Price moved up steadily as bullish momentum built.
After 14 pips gain, signs of weakening appeared (scalping indicator histogram fading).
Trade was closed, netting about 14 pips, roughly 2.3R reward-to-risk.
Case Study 2: USDJPY M1
During the Asian session on USDJPY M1, the RSX histogram showed a red trend (bearish).
The scalping histogram turned red, and a short was taken.
Stop loss was 5 pips above the recent swing high.
The pair dropped quickly in a short swoop.
After capturing 12 pips, momentum slowed, and the scalping indicator histogram flipped faintly.
The trade was exited, securing 12 pips. The quick setup on M1 reflects the fast nature of this method.
Strategy Tips
- Wait for both histograms to show the same color before opening a trade.
- Trade during active sessions like London and the first part of New York for smoother movement.
- Use consistent risk levels because scalping involves frequent trades.
- Avoid trading around high-impact news events to prevent spikes.
- If the RSX histogram changes color rapidly, wait for a stable trend before entering.
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Download the “rsx-indicator.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customisation options: Variable (Length, Price, levelOs, levelOb, alertsOn, alertsOnSlope, alertsOnOsOb, alertsOnCurrent, alertsMessage, alertsSound, alertsNotify, alertsEmail, soundFile), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
