RSI MA Indicator
RSI MA Indicator it is great tool to get reliable trading signal based on RSI that smoothed by the Movin Average. Accurate trend reversal MT5 indicator.
Description
The RSI MA Indicator is a technical indicator, the essence of which is to display RSI data smoothed by a moving average.
Thus, the RSI MA Indicator combines the advantages of two main technical indicators and gives significantly less false signals and allows you to stay in the trend longer and get more profit.
Naturally, the RSI MA for MT5 is a multi-timeframe indicator that works from a minute to a monthly timeframe. Because of its simplicity, this indicator is great for scalpers, day traders and long-term traders.
How to Trade With RSI MA Indicator
As you can see in the screenshot below, the indicator draws a simple blue line in a separate indicator window below the price chart. The best way to trade with the RSI MA Indicator is to get overbought and oversold signals. For a simpler visual understanding of trading signals, add OB and OS levels through the indicator settings on the “Levels” tab, as it does not display them by default.
When the indicator drops below 30 (you can choose your oversold level), expect a price reversal and a bullish trend. This can serve as a buy signal. You can set a stop loss at the previous low and exit the trade when the opposite signal appears.
If the indicator goes up and crosses the level of 70, we can expect the price to reverse downwards and strengthen the bearish trend.
Thus, we see a sell signal. Stop loss can be set above the previous price high and take profit in accordance with your risk reward management strategy or on the opposite signal.
Also, the RSI MA Indicator can be used as a filter, as an additional indicator to your trading strategy. You cannot buy when the market is already overbought, that is, when the RSI is above the overbought level. You can not sell when the market is already oversold, that is, when the RSI is below the oversold level.
Conclusion
Thanks to the combination of one of the most popular and proven indicators by millions of traders, the RSI MA indicator is a very good basis for your trading strategy. It gives reliable trading signals, but you still need to confirm them with other indicators or price action. What’s more, it’s completely free and you can download it from this page and start using it right now.