Adding MetaTrader 4 RSI Indices Technical Chart Indicator
Step 1: Open the Indices Trading Platform Navigator Window
Open the Navigator window as shown below; Go to “View” menu (click), then select the “Navigator” window (click), or From Standard Toolbar click the “Navigator” button or press short cut keyboard keys “Ctrl+N”
On the Navigator window, select “Indicators”, (Double Click)
How to Add RSI Stock Indexes Indicator on MT4 - MetaTrader 4 RSI Indices Indicator
Adding RSI MetaTrader 4 Indices Technical Chart Indicator
Expand the menu by clicking the expand button marker (+) or double click the “indicators” menu, after this the button will appear as (-) and will now display a list as shown below - select the RSI stock indices chart indicator from this list of stock indices indicators so as to add the RSI stock indexes technical indicator on the stock indexes trading chart.
From the Above window you can then place RSI indicator that you want on the Indices Trading chart
How to Put Custom RSI Stock Indexes Indicator on MetaTrader 4 and How to Install RSI Stock Indexes Indicator MetaTrader 4
If the stock indices indicator you want to add is a custom indicator - for example if the RSI indicator you want to add is a custom indicator you will need to first add this custom RSI indicator on the MT4 stock indexes trading platform and the compile the custom RSI indicator so that the newly added RSI custom indicator appear on the list of custom indicators on the MetaTrader 4 stock indexes trading platform.
To learn how to install RSI indicators on MetaTrader 4, how to add RSI indicator window to MetaTrader 4 and how to add RSI custom indicator on MT4 stock indexes trading platform - How to add a custom RSI indices trading Indicator on MT4.
About RSI Indices Indicator Tutorial
RSI Indices Technical Analysis and RSI Indices Trading Signals
Developed by J. Welles Wilder, described in the book “New Concepts in Technical Trading Systems”.
Relative Strength Index is the most popular indicator and it is a momentum oscillator and a indices trend following indicator. RSI compares a trading stock indexes price of the recent stock indexes price gains against its magnitude of recent losses stock indexes price losses and plots this data on a scale of values that ranges between 0-100.
Relative Strength Index measures the momentum of indices; values above 50 signify bullish momentum while values below 50 center-line signify bearish momentum.
- RSI is drawn as a green line
- Horizontal dashed lines are drawn to identifying overbought and oversold levels are i.e. 70/30 levels respectively.
Indices Technical Analysis and Generating Indices Trading Signals
There are several methods used to trade, these are:
50-level Crossover Signals
- Buy signal - when the indicator crosses above 50 a buy/bullish signal is given.
- Sell Indices Trading Signal - when the indicator crosses below 50 a sell/bearish signal is given.
RSI Indices Trading Chart Patterns
Traders can draw indices trend lines and map out stock indexes chart patterns on the RSI indicator. The Relative Strength Index often forms stock indexes chart patterns such as head and shoulders stock indexes chart pattern which might not have formed clearly on the stock indexes price chart.
Trading Support/Resistance Breakouts
RSI is a leading indicator and can be used to predict Support/Resistance Breakouts before stock indexes price breaks its support/resistance level. RSI uses the swing failure signal to predict when stock indexes price is about to break support and resistance levels.
Swing Failure - Support and Resistance Breakout
- Overbought- levels above 80
- Oversold- levels below 20
These levels can be used to generate indices trading signals such as when RSI turns up from below 20 after oversold, buy and sell when RSI crosses to below 80 after overbought, sell. These signals are not suitable for trading Indices Trading because they are prone to a lot of whipsaws.
Divergence Indices Trading Setups
Divergence trading is one of the technical analysis method used to trade reversals of the stock indexes price trends. There are four types of divergences that can be traded with this indicator covered in the divergence tutorial on this website.