Trading with RSI

Make informed trading decisions with a robust momentum indicator on MT4. Identify overbought or oversold conditions in asset price.

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What is RSI?

The Relative Strength Index or RSI is a technical analysis tool that measures the degree of change in the price of an asset. It is a momentum oscillator and ranges between 0 and 100.

Interpreting RSI

When RSI is >50, the trend is bullish
When RSI is <50, the trend is bearish
When RSI is >70, the trend is bullish, and the price is potentially overbought
When RSI is <30, the trend is bearish, and the price is potentially oversold

Setting Up the Relative Strength Index (RSI) on MT4

There are over 50 pre-installed technical indicators on MT4, including RSI. Here are some simple steps to launch and apply RSI to your charts.

Click on “Insert” in the “Navigation” window.
Move your mouse over “Indicators” and then “Oscillators”
Click on “Relative Strength Index”

After this, the “Settings” dialogue box will appear. Now you can change the parametres of the index, according to your strategy. There are two parametres:

Number of periods used for RSI
Visuals, such as colour of the lines, thickness, etc.

You can also change the parametres of the indicator directly from the chart.

Right-click on the RSI line to get the Settings menu.
Choose the “RSI (14) Properties” option. Here, 14 is the default period parametre, you can change this to your preferred timeframe.
If you want to delete the indicator, simply click on “Delete Indicator” in the same menu.

RSI is a useful technical indicator for evaluating the strength of the current market trend. Learn more about how to it to use to make informed trading decisions.

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