Introduction to Smoothed RSI Indiator

Smoothed RSI indicator is an oscillator that detects momentum and trend. This oscillator is derived using the Relative Strength Index, (RSI), but has a smoothening characteristic.

What's the Smoothed RSI Indiator?

This indicator plots an indicator that oscillates between zero and 100. The indicator also features a level 50 marker. It is usually above 50 when the market is uptrending and below 50 when it is downtrending.

To indicate bias or trend direction, the color of the line can also change color. It plots a line that is lime to indicate a bullish trend, and a line that is red to indicate a bearish one.

How does the Smoothed RSI Indiator Work?

Smoothed RSI Indicator shows an oscillator that is derived from RSI. This indicator plots an oscillator that is a moving average for the RSI. This indicator is pre-set to calculate a 5-bar Linearweighted Moving Average (LWMA). However, traders can adjust these parameters to adjust its sensitivity.

How to Use the Smoothed RSI Indiator for MT4

There are many settings options that can be used to adjust the oscillator's response to price movements.

The variable "period_RSI", adjusts how many bars the indicator uses to calculate its RSI.

The "applied_price_RSI", which allows users to adjust the price point at each bar that the indicator uses for its RSI calculation, is available. This indicator will use the closing bar if it is set to "0".

The variable "period_MA", adjusts how many periods the indicator uses in order to calculate the moving average of RSI.

You can change the type and method of moving average calculation by using "ma_method". Option "3" allows you to set the indicator to use LWMA.

This indicator can be used as a standard RSI indicator. Trend direction can be detected by comparing the price to its midline (50).

It can be used by traders to trade mean-reversals that are based on the line strongly reversing after being overextended from 50.

You can also use it to trade continuations of trend based on price dropping back to 50 and then rebounding in the direction the trend is heading.

Trade Setup

How to Enter?

The line should be at least 50. Wait for the line pullback to 50. When the line bounces above 50, open a buy order. Place the stop loss at the pattern's level.

When do you want to exit?

If price action indicates a bearish reversal, close the trade immediately.

Setup for Trades

How to Enter?

The line should be kept below 50. Wait for the line pullback to 50. When the line is below 50, open a sell order. Place the stop loss at the top of the pattern.

When do you want to exit?

When price action indicates a bullish reversal, close the trade.

Conclusion

This indicator can be used as a trend-following oscillator or momentum indicator. This indicator is smoother than the regular RSI. This significantly reduces the chance of false signals. It can also stay responsive by using a short period on the moving average, which allows it to produce timely and relevant signals.

Indicators - Download Instructions

Smoothed RSI indicator for MT4 (Metatrader 4 or MT4) is a Metatrader4 (MT4) indicator. Its purpose is to transform the accumulated historical data.

Smoothed RSI indicator for MT4 allows you to spot patterns and peculiarities in price dynamics that are not visible to the naked eye.

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How do I install Smoothed RSI indicator for MT4.mq4

• Smoothed RSI indicator for MT4.mq4
• Copy Smoothed RSSI Indicator for Metatrader 4.mq4 to your Metatrader Database / experts/ indicators
• Metatrader 4 Client can be restarted or started
• Choose Chart and Timeframe to test your MT4 indicator
• You can search "Custom Indicators" using your Navigator, mostly left in your Metatrader4 Client
• Right click on Smoothed RSI indicator for MT4.mq4.
• Attach a chart
• Change settings or click ok
• Your Chart contains the Indicator Smoothed-RSI Indicator For MT4.mq4.

How do I remove the Smoothed RSI indicator for MT4.mq4 in your Metatrader Chart.

• Select the Chart in which the Indicator is running in your Metatrader4 Client
• Right-click to open the Chart
• "Indicators list"
• Select the indicator and click delete

Smoothed Indicator for the MT4 (Free download)

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