The Stochastic of RSX indicator for Metatrader 5 is an overbought & oversold technical oscillator composed of the Stochastic and RSX indicator.
RSX is a smoother type of RSI that doesn’t add any lag to the price.
The indicator delivers the best trading results when traded in agreement with the overall market trend.
Spotting overbought and oversold market conditions with this indicator is easy:
- An overbought market condition occurs when the Stochastic of RSX indicator crosses back above the 90 level.
- An oversold market condition occurs when the Stochastic of RSX indicator falls back below the 10 level.
The indicator includes several inputs and parameters, such as Stochastic period, slowing period, price to use, RSX period, color up, color down, and more.
Free Download
stochastic-of_rsx.mq5 Indicator (MT5)
Trading Chart Example EURUSD H1
The picture below illustrates what the Stochastic of RSX indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs Using The Stochastic of RSX Indicator?
Buy Signal
- Buy market condition: the pair should be clearly in an uptrend.
- A buy signal is generated when the Stochastic of RSX indicator crosses back above 10 from below.
- Add a stop loss below the most recent swing low level.
- Close the buy transaction for a predetermined profit target that suits your preference.
- Alternatively, await a sell signal to close the buy trade.
Sell Signal
- Sell market condition: the pair should be clearly in a downtrend.
- A sell signal is generated when the Stochastic of RSX indicator crosses back below 90 from above.
- Add a stop loss above the most recent swing high level.
- Close the sell transaction for a predetermined profit target that suits your preference.
- Alternatively, await a buy signal to close the sell trade.
