Multi TimeFrame RSI Indicator For MT4
Table Of Contents:
- Multi TimeFrame RSI Indicator For MT4
- Trading ideas with the Multi TimeFrame RSI Indicator For MT4
- How to find high probability reversal levels with the Multi TimeFrame RSI Indicator For MT4
- Multi TimeFrame RSI Indicator For MT4 - Conclusion
The Multi TimeFrame RSI Indicator For MT4 shows the RSI value in all the available time frame in the MT4 chart. At times the curve of the indicator can look like a real mess but if you focus on the RSI curve color code, you won’t have to face any trouble. If necessary change the color according to your preference.
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Alerts In Real-Time When Divergences Occur
Trading ideas with the Multi TimeFrame RSI Indicator For MT4
If you are an experienced then you probably know that the RSI indicator can be used to detect extreme overbought and oversold conditions. When you spot such conditions then you can use that information to enter reversal trades very early and still have an acceptable winning percentage.
Now I will show you a professional way to use the Multi TimeFrame RSI Indicator For MT4 to spot extremely high probability reversal levels. These levels are found by searching for divergences which occur at the same time and price level on two different time frames.
If you find such a situation then you have found a high probability reversal price level which you can use to your advantage. And the best part is that the Multi TimeFrame RSI Indicator For MT4 makes it very easy to find such a reversal point.
How to find high probability reversal levels with the Multi TimeFrame RSI Indicator For MT4
Luckily the indicator makes it very easy for you to display the RSI values of different time frames within the same indicator subwindow.
In this example I have configured the indicator to show the RSI values of the time frames H4 and D1 as you can see in the following screenshot:
If I apply these settings to the EURUSD chart with time frame H4 then we can see two RSI lines drawn on the histogram, as shown in the following screenshot:
The blue line shows the values of the time frame H4. And the purple line shows the value of the time frame D1. Now we will use these two lines to find a high probability reversal level. What we want to find is 2 regular divergences which occur at the same time/price level on the RSI values on the time frames H4 and D1.
For a better visualization I have now removed the RSI values of the time frame H4 from the chart. Now only the RSI values of the D1 time frame is drawn. As you can see in the following screenshot, a nice bullish regular divergence has developed on the RSI D1:
This divergence gives you a high probality that the price will move upward soon. Now we want to pinpoint the moment/price level where the upward move will most probably start.
For this purpose we will search for a bullish regular divergence on the RSI values of the time frame H4. In the following screenshot I removed the RSI values of the time frame D1 and configured only the values from H4:
As you can see in the screenshot above, a nice bullish regular divergences is also visible on the values of the time frame H4. And, as you might noticed, the position/price level of the both divergences (D1 and H4) are exactly the same. AND THIS PRICE LEVEL is exactly the high probability reversal level that we searched.
I have highlighted this level again in the next screenshot, where you can see the RSI values of both time frames in the same chart:
Multi TimeFrame RSI Indicator For MT4 - Conclusion
The indicator can be used in many ways. I love the approach to combine multiple time frames to confirm signals.
From my experience such combined signals, which point into the same direction, have a compounding effect. The effect is often so big that the quality of your trades is not only 2 times bigger than before. This compounding effect can make your trading 3 times better than before.
If have done a research on 500 trades where the winning percentage was 58%. When I used this approach of filtering (2 signals from 2 time frames at the same time) then I saw that the winning percentage went up to 77%. This is nearly 3 times better than before.
Of course, as a side effect you will have much less trading opportunities with such a filtering system. But your trading will be much better and your stress level will be much lower. Trading can then be fun again.
