Mastering RSI with Moving Averages in MetaTrader 5

Unlocking the Potential of MA of Custom RSI

Are you fed up with the noise from traditional RSI signals? Elevate your momentum analysis with the MA of Custom RSI indicator. This robust tool smooths out the classic RSI using a moving average, delivering a clearer, more dependable signal line for identifying entries, exits, and trend direction.

This indicator is perfect for traders who:

Struggle with false signals from a whipsaw, rapidly changing RSI.
Desire a more precise and defined perspective on momentum shifts.
Implement strategies based on RSI but require a more resilient and actionable signal.

✨ Key Features & Benefits

Dual-Layer Analysis: This feature displays both the raw Custom RSI (period 1) and a smoothed Moving Average of the RSI within the same window, providing insights into both raw velocity and filtered trends.
Unmatched Customization:
- Custom RSI Core: Utilizes the built-in custom RSI in MetaTrader 5, enabling extreme settings like period 1 for ultra-sensitive readings.
- Fully Configurable MA: Adjust the MA Period, Method (SMA, EMA, LWMA, SMMA), and Shift to perfectly align the signals with your trading strategy.
Clear Visual Guidance: Customizable overbought and oversold levels (default: 80/15) are presented as horizontal lines, making it easy to spot reversals and extremes at a glance.
Professional Design: With a clean, intuitive layout, the MA is represented by a solid line while the underlying RSI is shown as a dotted line, all within a separate window scaled from 0 to 100.

🛠 How It Works & Trading Ideas

The indicator computes a standard RSI and then applies your selected moving average to those RSI values, resulting in a "signal line" that effectively filters out market noise.

Popular Trading Strategies:

MA Crossover: Go long when the fast RSI line crosses above its MA, and short when it crosses below.
Trend Confirmation: Hold onto your trades only while the RSI stays above its MA in an uptrend or below it in a downtrend.
Divergence Detection: Identify classic RSI divergences against price, using the smoother MA line for clearer, more reliable confirmation.
Level Rejection: Look for the RSI and its MA to bounce off the overbought/oversold levels to find high-probability reversal signals.

⚙️ Input Parameters

Customize every aspect of the indicator to suit your unique style:

RSI Settings: Period, Applied Price.
MA Settings: Period, Shift, Method (SMA, EMA, LWMA, SMMA).
Level Settings: Fully adjustable Overbought and Oversold levels.

📋 Requirements

MetaTrader 5
The standard Examples\RSI.ex5 indicator must be present in your MQL5/Indicators/Examples/ directory (installed by default with MT5).