The rsi filter indicator for MetaTrader4 is a Relative Strength Index smoothed indicator. The rsi filter indicator is essentially a RSI indicator which has added certain rules that must be present before a buy/sell signal is issued.
What the rsi filter indicator does is that it eliminates false signals that might be present on the normal RSI indicator. The rsi filter indicator gauges price changes over the past N periods (where N is the indicator’s input value).
The rsi filter has a default RSI Period Value of 34, meaning that it will measure the strength of the current candle price against the previous 33 (for us to arrive at a total of 34 periods). It is possible that you can tinker this value, but the more periods we get, the ‘slower’ the indicator will appear to respond to recent fluctuations in price.
The general construction of the rsi filter indicator allows for its use as a filter. In so doing, the indicator is kept out of trades in the market that are not trending, thus amounting to a higher win rate.
Enter a bullish trend if the rsi filter indicator blue line crosses the red line upward below the “50” mark and place a sell in the market if the rsi filter indicator blue line cuts the red line downwards above the “50” level. For this purpose, you can apply a horizontal line on the “50” mark on the rsi filter indicator window.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (RSI_Period, RSI_ApplyPrice, MA_Period, MA_Method, MA_Shift), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month