RSI Candles Indicator
MT4Also Available for MT5The RSI Candles indicator for MT4 automates the display of the RSI value on candlesticks.
Description
The RSI Candles indicator for MetaTrader 4 is a financial trading tool automated to show the value of the Relative Strength Index on candlesticks. This posits that the RSI indicator itself wouldn’t be visible on the chart; rather, its value would be displayed on every candlestick.
Furthermore, unlike the regular RSI indicator that is used for identifying the trend direction and extreme zones of the price, the RSI Candles indicator was designed to define the trend direction only. Thus, this indicator shows only bullish and bearish sentiments of an asset.
How do you read the RSI candles?
The RSI Candles indicator works around the 50.00 level of the RSI value. Typically, the RSI suggests a bullish sentiment when its value moves above the 50.00 level, while a bearish sentiment is depicted when the value falls below the 50.00 level.
Therefore, the indicator (RSI Candles for MT4) changes the color of the current candlestick to lime when the RSI value is above the 50.00 level. Conversely, the indicator turns the candlestick on the chart to red when the RSI value falls below the 50.00 level.
How to Trade With the RSI Candles Indicator for MT4
The above screenshot shows the trend analysis of the indicator on the EURUSD pair. The lime/red candlestick indicates that the RSI value is above/below the 50.00 level, as previously explained. Therefore, the image shows that the RSI value has been continuously trending below the 50.00 level, which indicates a strong bearish trend.
Furthermore, the indicator is recommended to be used along with price action/other technical trading tools and not as a stand-alone indicator. Thus, the above image typifies how price action was used along with the indicator to identify a selling opportunity.
Conclusion
The RSI Candles indicator for MT4 is a forex indicator that displays bullish and bearish sentiments based on the value of the Relative Strength Indicator.
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