The rsi_monitor MetaTrader 4 indicator gives a new perspective towards trading with the RSI technical study. The indicator draws a little panel on the top left corner of the chart window depicting all the values of the RSI on all timeframes and will signal when price is in the overbought and oversold regions.
Determining oversold and overbought regions in the market is one of the key role of the rsi_monitor indicator. Traders can formulate an intraday forex trading strategy tailored to take advantage of the signals from the rsi_monitor that price is overextended and is likely to retrace.
The RSI is an oscillator that is widely used by traders, but using this indicator in its unmodified version means a trader would have to flick through to see how the RSI indicator is faring on the different timeframes. Meanwhile, the rsi_monitor lays it out on one screen (a very convenient method).
If the value of the rsi_monitor on any timeframe is over 70 a green signal appears on the panel, an indication that price is in an overbought condition, while an rsi_monitor value that is under 30 (red signal appears on the panel) suggests that price is oversold.
Some traders prefer to adopt more extreme values of 80 (overbought) and 20 (oversold). The rsi_monitor offers customizable options in which these values can be adjusted.
There are cases in the market where price just continues in its push well beyond the zone that indicates the market as being overbought or oversold – in this case the value of the rsi_monitor keeps pushing into the extreme.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart monitor indicator
Customization options: Variable (Panel Side, Allow sub window, Panel Background color, Panel Title color, Panel front Name, Panel Text color, Panel Values color, OverBought icon color, OverSold icon color, Normal icon color, RSI, RSI period, RSI Applied Price, RSI OverSold Level, RSI OverBought Level, Enable lert, Enable Email, Enable Notification, Enable Sound, Sound Name), Colors, width & Style.
Time frames: All