How to Add RSI Indicator on MT4 Charts - Adding MT4 RSI Chart Indicator

Step 1: Open the Navigator Window on Trading Platform Software

Open Navigator window as shown & displayed below: Go to 'View' menu (press on it), then choose 'Navigator' window (press), or From Standard Tool-Bar click 'Navigator' button or press key-board shortcut keys 'Ctrl+N'

On Navigator window, choose 'Indicators', (Double Press)

How Do I Add RSI Indicator in MT4? - MT4 RSI Indicator - How to Use RSI Indicator in Forex

How Do You Add RSI Indicator on MT4 - MT4 RSI Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding RSI MT4 Chart Indicator

Expand the menu by clicking 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 chart indicator from this list of trading indicators so as to add the RSI indicator on the forex chart.

How to Add RSI Indicator on Chart - How Do You Use RSI Indicator? - Adding MT4 RSI Indicator

How Do You Add RSI Indicator - From the Above window you can then place RSI indicator that you want on the chart

How to Add Custom RSI Indicator to MetaTrader 4

If the indicator you as a trader 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 platform & then compile custom RSI indicator so that the newly added RSI custom indicator pops up on the list of custom indicators in MT4 platform.

To learn how to setup RSI indicators in MT4, how to add RSI indicator panel to MT4 and how to add RSI custom indicator in MT4 - How to add a custom RSI indicator in MT4.

About RSI Indicator Explained

Relative Strength Index RSI Technical Analysis & RSI Signals

Developed by J. Welles Wilder, explained in the book "New Concepts in Technical Systems".

Relative Strength Index is the most popular trading indicator & it's a momentum oscillator and a trend following trading indicator. RSI compares a trading currency magnitude of the recent price gains against its magnitude of recent losses price losses & draws this data on a scale of values which ranges between 0-100.

Relative Strength Index measures the momentum of a currency pair; values above 50 signify bullish momentum while values below 50 center-line signify bearish momentum.

Relative Strength Index RSI Indicator - How to Use RSI Indicator - RSI Indicator Settings on MetaTrader 4

RSI is drawn as a green line
Horizontal dashed lines are plotted to identifying overbought & oversold levels are i.e. 70/30 levels respectively.

FX Technical Analysis and How to Generate Signals

There are various methods used to trade, these are:

50-level Cross over Signals

Buy trade signal - when the technical indicator crosses above 50 a buy/bullish trade signal is given.
Sell Trading Signal - when the trading indicator crosses below 50 a sell/bearish trading signal is given.

RSI Indicator Buy Sell Signals - How Do I Use RSI Indicator? - Adding MT4 RSI

RSI Chart Setups

Traders can draw trend lines & map out patterns on the RSI. The RSI often forms chart patterns such as head and shoulders pattern which might not have formed clearly on the price chart.

FX Support/Resistance Breakouts

RSI is a leading indicator & can be used to predict Support/Resistance Breakouts before price breaks its support/resistance level. RSI uses the swing failure signal to predict when the price is about to break support and resistance zones.

Support Resistance Breakout - How Do I Use RSI Indicator? - RSI Strategies Buy & Sell Signal

Swing Failure - Support & Resistance Break-out

Over-bought/Oversold Conditions on Technical Indicator

Overbought levels above 80
Over-sold- levels below 20

These levels can be used to generate FX signals such as when RSI turns up from below 20 after oversold, buy & sell when RSI crosses to below 80 after overbought, sell. These signals aren't suitable for trading FX because they are prone to a lot of fake outs.

Divergence Forex Trade Setups

Divergence trading is one of analysis method used to trade reversals of the market trends. There are 4 types of divergences that can be traded with this technical indicator covered in the divergence tutorial on this site.

Learn More Tutorials and Lessons:

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