RSI is one of the most common and powerful tools used by traders to find extreme reversals. Smarter RSI uses moving average to calculate the RSI instead of price. Using moving average instead of price reduces noise and makes RSI signals more clear. This makes Smarter RSI even more powerful than normal RSI.
Check out the indicator in action [VIDEO below]
Why choose Smarter RSI?
- It's smoother than the normal RSI.
- More accurate in detecting extreme reversal points.
- Great tool to find low risk entries.
- Doesn't repaint.
- Calculates RSI for different moving averages. (Simple, Exponential, Smoothed, Linear Weighted)
- Works in both trending and non trending markets.
- Can be combined with any trading system.
- Can be integrated in Expert Advisors.
How to use Smarter RSI?
You can use Smarter RSI just like the default RSI. Smarter RSI was developed to reduce noise and provide better signals. In trending markets, you can filter out the bad signals by trading only in the direction of the trend. The trend could be determined by using large moving averages. For example, if 50 EMA (Exponential Moving Average) is above 200 EMA, then the trend is said to be uptrend. In uptrend, you should ignore all sell signals and open trades only when you get buy signals from Smarter RSI.
You can also use Adaptive Smart Bands to determine the trend and trade only in the direction of the trend.
You can check out the Adaptive Smart Bands here: https://www.mql5.com/en/market/product/11473
Smarter RSI, like all technical indicators, tries to predict market movement based on past. Any fundamental news could change the direction of the trend or increase volatility in the markets. Hence, it is advised to keep an eye on fundamental news and the economic calendar to avoid any unwanted volatility. If you are completely unfamiliar with fundamental analysis, you can just keep an eye on the economic calendar and avoid making new trades during High-Impact news. You can also put a StopLoss on your existing profitable trades and reduce your risk.
I highly recommend manually back-testing your trading strategy. You can also practice your strategy on demo trading accounts for a few weeks or months without any financial risk before going live. Practice will help you feel more confident with your strategy and make you a better trader.
If you face any problems with this indicator, please feel free to contact me.
- MA_Period: The period used to calculate moving average. (Default 10)
- MA_Method:The method used to calculate moving average. (Simple, Exponential, Smoothed, Linear Weighted)
- MA_applied_price:The applied price type to calculate the moving average. (Close, Open, High, Low, Median, Typical, Weighted)
- RSI_Period: The period based on moving average used to calculate the RSI. (Default 14)
- Alerts : Enable/Disable popup alerts when the SmarterRSI value goes above or below the UpperLevel or the LowerLevel.
- Email Alerts: Enable/Disable email alerts when the SmarterRSI value goes above or below the UpperLevel or the LowerLevel.
- Mobile Alerts: Enable/Disable push notifications for mobile when the SmarterRSI value goes above or below the UpperLevel or the LowerLevel.
- UpperLevel: Level to be drawn in indicator window and used for popup/email/mobile alerts. (Must be between 1-100 and higher than the LowerLevel).
- LowerLevel: Level to be drawn in indicator window and used for popup/email/mobile alerts. (Must be between 1-100 and lower than the HigherLevel).
- Minor bug fixes.
- Added new boolean input parameter called "Email Alerts". (Option to enable/disable email notifications when SmarterRSI value crosses below/above "Upperlevel" or "Lowerlevel")
- Added new boolean input parameter called "Mobile Alerts". (Option to enable/disable mobile push notifications when SmarterRSI value crosses below/above "Upperlevel" or "Lowerlevel")
- Added new integer input parameter called "UpperLevel"
- Added new integer input parameter called "LowerLevel"