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MQL5 ReferenceStandard LibraryTrading Strategy ClassesModules of Trade SignalsSignals of the Oscillator Relative Strength Index 

Signals of the Oscillator Relative Strength Index

This module of signals is based on the market models of the oscillator Relative Strength Index. The mechanism of making trade decisions based on signals obtained from the modules is described in a separate section.

Conditions of Generation of Signals

Below you can find the description of conditions when the module passes a signal to an Expert Advisor.

Signal Type

Description of Conditions

For buying

  • Reverse behind the oversold level – the oscillator turned upwards and its value at the analyzed bar is behind the oversold level (default value is 30).

Relative Strength Index - Buy Signal

 

  • Failed swing – the oscillator rises higher than the previous peak at the analyzed bar.

Relative Strength Index - Buy Signal

 

  • Divergence – the first analyzed bottom of the oscillator is lower than the previous one, and the corresponding price bottom is lower than the previous one.

Relative Strength Index - Buy Signal

 

  • Double divergence – the oscillator form three consequent bottoms, each of them is higher than the previous one; and the price formed three corresponding bottoms, and each of them is lower than the previous one.

Relative Strength Index - Buy Signal

 

  • Head/Shoulders – the oscillator formed three consequent bottoms, and the mid one is lower than the others.

Relative Strength Index - Buy Signal

For selling

  • Reverse behind the overbought level – the oscillator turned downwards and its value at the analyzed bar is behind the overbought level (default value is 70).

Relative Strength Index - Sell Signal

 

  • Failed swing – the oscillator falls lower than the previous bottom at the analyzed bar.

Relative Strength Index - Sell Signal

 

  • Divergence – the first analyzed peak of the oscillator is lower than the previous one, and the corresponding price peak is higher than the previous peak.

Relative Strength Index - Sell Signal

 

  • Double divergence – the oscillator formed three consequent peaks, each of them is lower than the previous one; and the price formed three corresponding peaks, each of them is higher than the previous one.

Relative Strength Index - Sell Signal

 

  • Head/Shoulders – the oscillator formed three consequent peaks, and the mid one is higher than the others.

Relative Strength Index - Sell Signal

No objections to buying

Value of the oscillator grows at the analyzed bar.

No objections to selling

Value of the oscillator falls at the analyzed bar.

Note

Depending on the mode of operation of an Expert Advisor ("Every tick" or "Open prices only") an analyzed bar is either the current bar (with index 0), or the last formed bar (with index 1).

Adjustable Parameters

This module has the following adjustable parameters:

Parameter

Description

Weight

Weight of signal of the module in the interval 0 to 1.

PeriodRSI

Period of calculation of the oscillator.

Applied

A price series used for calculation of the oscillator.


Updated: 2015.12.03