RSIOMA Indicator

Description

The RSIOMA – Relative Strength Index of Moving Averages is a variant of the classic RSI indicator. It uses the moving averages to calculate the RSI. Furthermore, it adds a moving average to the RSI to provide bullish and bearish forex trend trading signals with alerts.

The indicator is similar to the RSI and is suitable for new and advanced forex traders. Moreover, it works in all intraday chart time frames as well as the higher time frames. So, this indicator is helpful for short and long-term forex traders.

RSIOMA Indicator For MT4 Trading Signals

The indicator plots a blue RSI line and violet moving average of the RSI. Additionally, it plots 20, 50 and 80 levels. The histogram bars at the bottom of the indicator window shows the trend direction. There are multiple methods to trade this indicator.

The trading strategy is to buy when the indicator values move higher than 50 with a stop below the previous swing low.  Similarly, traders should open sell trades when the RSI crosses below the 50 level.

Another trading strategy is to buy once price rises above the 20 level and sell if price falls below the 80 as they indicate overbought and oversold market condition. However, traders should note that during a strong trend the indicator values tend to stay above 80 or below 20 for a prolonged period.

Conclusion

In summary, the RSIOMA indicator for MT4 helps forex traders using RSI to identify the price trend and provide buy and sell forex trading alerts.