CustomRsi50
- Indicators
- Francesco Capurso
- Version: 1.4
- Updated: 6 September 2024
CustomRSI50 - Customized RSI Indicator with Level 50
Description
CustomRSI50 is a customized technical indicator based on the popular Relative Strength Index (RSI). This indicator provides a clear and customizable view of the RSI, with a special emphasis on the 50 level, which is crucial for many traders in momentum analysis.
Main Features
- Configurable RSI period
- Highlighted 50 reference level
- Customizable applied price type
- Displayed in a separate window
- Fixed scale from 0 to 100 for easy interpretation
Customizable Parameters
- RSI_Period: Allows you to set the period for RSI calculation (default: 14)
- applied_price: Allows you to select the price type used for the calculation (default: close price)
How to Use CustomRSI50
- Apply the indicator to any chart in your MetaTrader 5.
- Customize the RSI period and price type according to your preferences.
- Observe the RSI movement relative to the 50 level:
- Values above 50 indicate bullish momentum.
- Values below 50 indicate bearish momentum.
Signal Interpretation and Higher Timeframes
The indicator provides signals based on the RSI crossing the 50 level. Here’s how to make the best use of it:
- Entry Signal: When RSI crosses the 50 level at candle close, you can enter with a risk/reward ratio of 1:1.5, extendable if needed.
- Higher Timeframe Confirmation: Additional confirmation can be obtained by observing the RSI behavior on higher timeframes. For instance, if on a higher timeframe (H4 or H8) the RSI is above 50, it's preferable to look for long signals on lower timeframes like H1 or M15.
Higher Timeframe Confirmation Table
Trading Timeframe | Confirmation Timeframe | Action Strategy |
---|---|---|
M5 | H1 | Look for long signals on M5 only if RSI on H1 is above 50; short signals if it's below 50 |
M15 | H4 | Look for long signals on M15 only if RSI on H4 is above 50; short signals if it's below 50 |
H1 | H8 | Look for long signals on H1 only if RSI on H8 is above 50; short signals if it's below 50 |
H4 | Daily | Look for long signals on H4 only if RSI on Daily is above 50; short signals if it's below 50 |
Advantages
- Clear visualization of market momentum
- Easy identification of trend changes around the 50 level
- Customization to fit various trading strategies
Advanced Version
Discover the advanced version of CustomRSI50AlertAndMail Available for $30, this premium version includes additional features such as email notifications and sound alerts for every RSI cross over the 50 level, so you never miss an important signal! Click here to learn more.
CustomRSI50 is the perfect tool for traders who want a clear and customizable RSI analysis, with a special focus on the critical 50 level. The integration with higher timeframe cycles adds an additional level of confirmation, making the indicator reliable for various trading strategies.