The RSItv indicator for MetaTrader4 is a smoothed Relative Strength Index with sound alerting the crossing of the 50 level. The difference between the Relative Strength Index (RSI) and the smoothed RSI value (a Simple Moving Average plotted over a longer timeframe) is the preference of the value “50.”
The RSItv indicator is further smoothed and plotted. What we get is a smoothed value that replicates the unique RSI curve which is much spikey. In addition to this, a signal line can be drawn as like that of the MACD.
The RSItv indicator signal line fluctuates around the “50” level. Price is said to be bullish when the line breaks above the “50” mark and the color of the line turns lime, while price is said to be bearish if the RSItv indicator line breaks below the “50” mark and the color of the line turns red.
The indicator can also be traded based on divergence with price. As such initiate a buy if the smoothed RSI is surging higher while price is dipping lower. Likewise, enter a sell position if the smoothed RSI is dipping lower while price is surging higher.
The RSItv has remained a very handy momentum oscillator that has become every trader’s delight. Notwithstanding changes in market conditions as well as volatility over the years, the RSItv indicator is able to mimic the original RSI as it was in the Welles Wilder’s days.
The original interpretations of Welles Wilder are crucial in understanding the RSItv indicator.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (period_RSI, applied_price_RSI, period_MA, ma_method, Sound), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: momentum oscillator