RSO, Relative Strength Oscillator - MetaTrader 4 Script | Forex Indicator Download - MT4/MT5 Resources

The Relative Strength Oscillator or RSO is an oscillator version of the Relative Strength Index . The Relative Strength Index is very popular as a powerful and accurate indicator. It is an exponential indicator that varies from 0 to 100. We used to see 70 or 30 RSI online and decide to open a new position. But as a metric, symmetry is more readable and better suited for comparison. The center line of an oscillator is usually 0.0 and it swings around the center line. RSO intends to fill this role. With RSO everything is the same relative strength index as before, just minus 50. Here we now have 20 and -20 as overbought and oversold positions.

I added color bars just for more clarity. Green bars show increasing RSO and red bars show decreasing RSO. The RSO or Relative Strength Index curve cannot show small changes, but the colored bars can. For example, when RSO exceeds 20, the first red bar shows a change in direction. As you can see, RSO with bars makes it easier to understand at just a glance.

Figure 1. RSO indicator

Continuous green/red bars indicate that we should wait for more direction changes. As shown in the chart below, the RSO is around 20 and starting to decrease. Without the bar warning, we might be persuaded to open a short position. However, a continuous bar of opposite colors is a good indicator not to do anything.

Figure 2. RSO sequential color changes

I used the MetaQuotes Relative Strength Index source code as the basis for the recoded RSO .

Attachment download

📎rso.mq4 (5.44 KB)

Source: MQL5 #18913