Smoothed Relative Strength Index (RSI) Indicator Download for MetaTrader 4 - Free - MT4/MT5 Resource

The Smoothed Relative Strength Indicator (Smoothed RSI) is an advanced version of the original RSI designed for the MetaTrader 4 (MT4) platform. This MetaTrader4 oscillator uses a smoothed moving average to reduce the extreme swings of the RSI, providing traders with more precise analysis.

One of the key features of this indicator is the color change of the oscillator upon entry into overbought and oversold zones : oversold zones appear green and overbought zones appear orange. Additionally, the indicator issues alerts upon entering these areas, allowing traders to understand potential positions to improve trading decisions.

RSI Indicator Table

Smoothed RSI indicator at a glance

The Smoothed RSI indicator is highly beneficial for traders who rely on the indicator in their trading strategies. This advanced version of the RSI indicator uses moving averages to reduce volatility.

When the oscillator enters the overbought zone, it turns to orange ; when it reaches the oversold zone, it turns to green . Additionally, the MT4 Volatility Indicator sends alerts to notify traders of these critical market conditions.

Oversold Zone

In the USD/CHF 4-hour chart, the oscillator reaches the oversold zone, turns green and sends an alert to notify traders of the threshold .

After this signal, the market experienced a brief downward adjustment, but the overall trend was from bearish to bullish . The price then rises sharply, continuing its upward trend.

This behavior demonstrates the advantages of smoothed RSI signals in identifying reversal points and trend changes, especially in overbought and oversold zones. Traders can use these signals to confidently enter a buy or sell position.

Overbought Zone

In the GBP/USD 15-minute chart, the smoothed RSI oscillator reaches the overbought area and changes color to orange. This color change alerts traders that the price has reached overbought levels. After this signal, the price starts a downward trend.

This setup can be an excellent opportunity for traders looking to establish a sell position. Using such signals can help traders enter the market at key points and take advantage of trend-aligned trading opportunities.

RSI oscillator settings

Display_Settings

• Chart_theme : select a custom theme for the indicator;

Indicator_Settings

• RSI_period : select RSI period;
• Applied_price : select calculation type;
• Overbought : Set the overbought level;
• Oversold : Set the oversold level;
• Smooth_on : Turn on/off RSI smoothing;
• Alerts_on : Turn on/off alarms;
• Alerts_on_enter : Toggle alerts when entering overbought/oversold areas;
• Alerts_on_exit : Toggle alerts when exiting the overbought/oversold area;
• Alerts_on_current : Toggle alerts when the price closes out of the overbought/oversold area;
• Alert_message : turn on/off message reminder;
• Alert_sound : turn on/off the sound alarm;
• Alert_email : Turn on/off email alerts.

Conclusion

The Smoothed Relative Strength Oscillator is a useful tool for traders seeking to identify overbought and oversold areas. When the oscillator enters overbought or oversold zones , the indicator changes color and sends an alert to notify traders of these thresholds.

Moreover, using a moving average reduces RSI noise in its algorithm, providing traders with more accurate market analysis. These features help traders make more accurate decisions and benefit from more reliable signals.