The RSX Forex Oscillator for Metatrader 4 is a technical indicator that delivers overbought & oversold trading signals on the chart.
The indicator pops up in a separate MT4 chart window as a purple colored signal line that oscillates between 0 and 100.
The value 0 is oversold, while 100 is overbought.
RSX is very reliable, lightweight, and will not slow down your trading platform.
Buy & Sell Trade Example
- Open a buy order when the RSX indicator reading reaches 0 and the market is in an uptrend.
- Open a sell order when the RSX indicator reading reaches 100 and the market is in a downtrend.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Rsx oscillator.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the RSX mt4 technical indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy when trading with the RSX Forex oscillator indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Oscillator
Does the indicator repaint? No.
RSX Oscillator + Heiken Ashi Trend Signals Forex Strategy
This MT4 trading strategy combines the smooth precision of the RSX Forex Oscillator Indicator with the visual clarity of the Heiken Ashi Trend Signals Indicator.
It is built for traders who want simple yet powerful entries that follow market momentum while filtering out price noise.
The strategy is best suited for M5 to H1 charts and works effectively in trending environments where clean entries and exits are critical.
The RSX indicator measures market strength and identifies oversold and overbought levels with greater stability than the standard RSI.
Meanwhile, the Heiken Ashi Trend Signals Indicator smooths candlestick data to show clear bullish or bearish color transitions — green for bullish conditions and orange for bearish.
Together, these tools allow traders to capture early reversals and follow trend direction with high precision.
Why This Strategy Works
Most traders lose money by entering too early during momentum shifts.
This combination solves that by using the RSX to pinpoint market exhaustion and the Heiken Ashi trend colors to confirm real direction.
The RSX gives the signal for potential reversal, while the Heiken Ashi candles confirm the trend continuation.
This creates a balance between timing and confirmation, making it ideal for intraday and swing traders alike.
Buy Entry Rules
- Open a buy order when the RSX indicator reading reaches 0, showing an oversold condition and potential bullish reversal.
- Confirm the uptrend when Heiken Ashi candles turn green, signaling a momentum shift to the upside.
- Place your stop loss a few pips below the latest swing low or the most recent orange candle.
- Take profit at 20–40 pips for short-term trades or close when RSX reaches the 70–80 zone.
Sell Entry Rules
- Open a sell order when the RSX indicator reading reaches 100, indicating the market is overbought and likely to reverse down.
- Confirm the downtrend when Heiken Ashi candles turn orange, showing bearish strength.
- Place your stop loss a few pips above the latest swing high or above the last green candle.
- Take profit at 20–40 pips for scalping or close when RSX returns to the 30 level.
Advantages
- Combines momentum, timing, and trend confirmation for high-probability setups.
- Heiken Ashi smoothing reduces false entries caused by short-term volatility.
- RSX indicator reacts faster than the traditional RSI, providing earlier reversals.
- Easy to read visually, making it beginner-friendly.
- Works across all major forex pairs and timeframes.
Drawbacks
- Delayed exits if traders rely only on candle color changes.
- RSX readings can remain at extremes during strong trends, so confirmation is key.
Example Case Study 1: EURUSD M15 Chart
On the EURUSD pair, the RSX reached 0 during a temporary dip in the London session.
Shortly after, Heiken Ashi candles switched from orange to green, confirming a new uptrend.
A buy position was entered at 1.0740 with a stop loss at 1.0725 and a take profit at 1.0780.
Within an hour, the pair climbed steadily, hitting the profit target for +40 pips.
The smooth transition of the Heiken Ashi candles avoided early exits and allowed the trader to ride the move with confidence.
Example Case Study 2: GBPUSD M30 Chart
Later in the New York session, GBPUSD spiked upward, and the RSX reading hit 100, signaling overbought conditions.
At the same time, the Heiken Ashi candles shifted from green to orange, confirming bearish pressure.
A sell order was executed at 1.2790 with a stop loss at 1.2810 and a target at 1.2750.
Price dropped smoothly within two hours, hitting the take profit for +40 pips.
This combination perfectly timed the reversal and captured a clean profit before the next consolidation.
Strategy Tips
- Confirm the trend with Heiken Ashi candle colors — green for buy, orange for sell.
- Avoid trading when candles alternate colors rapidly; it often means sideways price action.
- Use this strategy during the London and New York sessions for higher volatility and cleaner signals.
- Always confirm higher timeframe direction before taking a trade for extra confidence.
The RSX Oscillator + Heiken Ashi Trend Signals MT4 strategy provides an effective and straightforward method for trading short-term reversals and continuations.
By synchronizing the RSX’s overbought and oversold readings with the Heiken Ashi’s color-coded trends, traders can make fast and confident trading decisions in real time.
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Download the “Rsx oscillator.mq4” indicator for Metatrader 4
