The Stochastic RSI Forex indicator for Metatrader 5 spots overbought and oversold market conditions based on the RSI + Stochastic technical indicators.
The indicator gets displayed in a separate chart window as an oscillator that oscillates between 0 and 100.
How to spot overbought and oversold levels?
- The market is considered overbought when the oscillator reaches the 80 value.
- The market is considered oversold when the oscillator reaches the 20 value.
For best performance, the Stochastic RSI indicator needs to be combined with a trend-following indicator or system.
The indicator contains the following inputs and parameters: K period, D period, RSI period, stochastic period, RSI applied price.
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames and Forex pairs.
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Chart Example
The following chart shows how the Stochastic RSI indicator looks when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Stochastic RSI Forex Indicator?
Find a simple trading example below:
Buy Signal
- In a rising currency market, a buy signal is given when the Stochastic RSI oscillator goes back above 20 from below.
- Open a buy transaction and place your stop loss below the most recent support zone.
- Close the buy trade for a fixed take profit target, or wait for a sell signal.
Sell Signal
- In a declining currency market, a sell signal is given when the Stochastic RSI oscillator goes back below 80 from above.
- Open a buy transaction and place your stop loss below the most recent support zone.
- Close the buy trade for a fixed take profit target, or wait for a sell signal.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Stoch RSI.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration