RSX-RSI Bar Chart Indicator (The Best Technical Indicator for Scalping and Day-Trading)

RSX-RSI Bar Chart Indicator (The Best Technical Indicator for Scalping and Day-Trading). RSI is a reliable tool for all, but especially Scalpers and day traders. Getting infrequent trades generated by RSI is not an issue if they are high-quality trades. It’s all about finding the quality trades to make up for infrequent intraday trades.

The RSI oscillates between 0 and 100, and it’s often used to measure overbought and oversold conditions in the market divergence, or it can be used to identify the general trend.

• Download “ForexWOT-RSXRSIsystem” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “ForexWOT-RSXRSIsystem.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “ForexWOT-RSXRSIsystem” trading system and strategy.
• You will see the “RSX-RSI Bar Chart Trading System” is available on your Chart.

The rules of the system are straightforward, we only need to connect the most recent RSI peaks or valleys with a trendline. and a breakout of the Trendline, will warn us that the market has lost its steam and traders can find trading opportunities with good risk to reward ratios.

Because RSI measures the surge in closing prices, when RSI changes direction and either breaks above or below a trend line, a significant move in price can result.

 

In the GBP-JPY bullish chart above, we noticed some RSI trendline breaks. The use of the trendline provided additional visual confirmation that a trade opportunity is near.

The use of RSI trend line breaks gave buy signals a few candles before the actual move.

If you prefer a better visualization of the trend, add a long term Moving Average, and take trades in its main direction.

Let’s look at the next examples.

RSI is an indicator and just follow the price. You should be patient and wait for a clear break of its trend line. Maybe sometimes, you should wait to see how the first candle acts after the breakout and after that take your trade. But remember that we only use indicators to support what we have already established with price action.

An important tip is that you should not chase the trades. When you chase a trade, your entry will be at a bad spot. So…, Let them come to you.