Smart RSI Divergence Signal Scanner

Overview

RSI MA Signals is a comprehensive market analysis indicator for MetaTrader 5 that combines the Relative Strength Index (RSI), Moving Average, market regime classification, divergence detection, and multi-stage trading signal analysis.

Instead of focusing on isolated BUY/SELL signals, the indicator evaluates the broader market context, identifies the current trend or range, analyzes local price behavior, and tracks the development of potential trading scenarios.

Its integrated Historical Tester and SL/TP Optimizer allow you to evaluate indicator-based trading ideas on historical data directly on the chart, without opening real positions.

The analysis process:

Market Context → Trading Scenario → Confirmed Entry → Historical Testing → Parameter Optimization

RSI MA Signals is designed for traders who want to understand not only where a potential signal appears, but also the market conditions behind it and how a trading idea has performed historically.

Key Features

• Market Regime Detection: Identifies strong uptrends, uptrends, ranges, downtrends, strong downtrends, and transitional market conditions.

• Local State Analysis: Identifies pullbacks, Moving Average tests, deep corrections, temporary breakouts, recoveries, and other local price conditions.

• Trend Health Analysis: Evaluates trend quality and helps identify weakening momentum and potential exhaustion.

• Higher Timeframe Filter: Incorporates the direction of a higher timeframe into signal confirmation.

• 10 Trading Scenarios: Analyzes trend-following, range-based, breakout, and reversal setups.

• 20 BUY/SELL Entry Types: Covers both directions across the supported trading scenarios.

• RSI Divergence Detection: Identifies regular and hidden bullish and bearish divergences.

• Moving Average & Sigma Envelope: Analyzes price structure and statistical deviations from the Moving Average.

• Historical Tester: Evaluates virtual trades and provides detailed performance statistics.

• SL/TP Optimizer: Tests Stop Loss and Take Profit combinations and identifies potentially more stable parameter zones.

• Flexible Configuration: Includes trading style presets, signal strictness settings, and detailed customization options.

• Documentation: Includes guides for getting started, configuration, and advanced functionality.

1. Market Regime & Local State

Understanding the current market environment is essential when evaluating a trading setup.

RSI MA Signals automatically classifies market conditions into six regimes:

• Strong Uptrend

• Uptrend

• Range

• Downtrend

• Strong Downtrend

• Transition

This classification helps distinguish directional markets from ranging conditions and periods when the market structure is changing.

The Local State module provides additional context about current price behavior, including pullbacks, Moving Average tests, deeper corrections, temporary breaks, and recoveries.

By combining market regime and local state analysis, traders can evaluate a potential setup in the context of the prevailing market structure.

2. Trend Health & Higher Timeframe Filter

Trend Health evaluates the quality of the current market movement and helps identify signs of weakening momentum or trend exhaustion.

The Higher Timeframe Filter adds another layer of analysis by considering the direction of a larger timeframe when evaluating entry conditions.

These features help traders distinguish between setups aligned with the broader market direction and potential countertrend opportunities.

3. 10 Trading Scenarios & 20 Entry Types

RSI MA Signals analyzes 10 trading scenarios, each evaluated for BUY and SELL opportunities.

The supported scenarios include:

1. Trend Retest

2. Trend Deviation

3. Hidden Divergence

4. Range Boundary

5. False Break

6. Trend Reclaim

7. Trend Consolidation Breakout

8. Exhaustion Reversal

9. Countertrend

10. Range Breakout

This results in 20 directional entry types across trend-following, range-trading, breakout, and reversal conditions.

Each scenario uses the indicator's analysis logic to evaluate whether the relevant conditions have developed sufficiently for signal confirmation.

4. Three Stages of Signal Development

Not every market observation represents a confirmed entry. RSI MA Signals separates the development of a trading idea into three stages:

Attention → Setup → Confirmed Entry

• Attention: Initial conditions begin to develop.

• Setup: A potential trading scenario has formed, but confirmation requirements have not yet been satisfied.

• Confirmed Entry: The required conditions are met and a confirmed BUY or SELL signal is generated.

This multi-stage approach provides visibility into the development of a potential trade rather than displaying only the final signal.

5. RSI Divergence Detection

RSI MA Signals uses the Relative Strength Index as part of a broader market analysis framework, rather than limiting its application to conventional overbought and oversold levels.

The indicator identifies four divergence types:

• Regular Bullish Divergence

• Regular Bearish Divergence

• Hidden Bullish Divergence

• Hidden Bearish Divergence

Divergence analysis uses confirmed price and indicator extremes to distinguish established divergence patterns from those that are still developing.

These patterns can provide additional context when evaluating potential continuation or reversal scenarios.

6. Moving Average & Sigma Envelope

The Moving Average helps assess market direction and price structure.

The Sigma Envelope defines statistical deviation zones around the Moving Average, providing additional context for evaluating how far price has moved from its dynamic reference level.

These zones are used in the analysis of pullbacks, mean reversion, extended price movements, and other supported trading scenarios.

7. Built-in Historical Tester

The integrated Historical Tester allows you to evaluate supported indicator signals directly on the chart using historical market data.

The tester uses virtual trades and does not open real market positions.

Available statistics include:

• Total Trades

• Wins, Losses, and Break-Even Trades

• Win Rate

• Net Result in R

• Average Result

• Profit Factor

• Maximum Drawdown

• Winning and Losing Streaks

• Performance by Individual Signal Type

• Reasons Why Potential Entries Were Filtered Out

You can select the scenarios to test, historical period, trading hours, entry model, and risk parameters.

This functionality helps you investigate different trading hypotheses and compare the historical performance of individual signal categories under selected conditions.

8. SL/TP Optimizer

The built-in SL/TP Optimizer evaluates different Stop Loss and Take Profit configurations using historical data.

Three optimization modes are available:

SL + TP Grid

Searches for Stop Loss and Take Profit combinations within the selected parameter ranges.

Fixed SL → Find Best TP

Keeps Stop Loss fixed while evaluating alternative Take Profit values.

Fixed TP → Find Best SL

Keeps Take Profit fixed while evaluating alternative Stop Loss values.

Stable Zone Analysis

The Stable Zone feature evaluates neighboring SL/TP combinations to help determine whether a strong historical result is supported by a broader area of parameter values or concentrated around a single combination.

This provides additional context when assessing the sensitivity of historical results and the potential risk of overfitting.

Optimization results are historical observations, not guarantees of future performance.

9. Trading Styles & Signal Strictness

RSI MA Signals includes predefined configurations for different approaches to market analysis:

• Custom Settings

• Scalping

• Intraday

• Swing

• Position

The Signal Strictness setting offers three modes:

• Aggressive: A less restrictive signal configuration.

• Balanced: A middle-ground configuration.

• Conservative: A more restrictive signal configuration.

The available presets provide a starting point for configuration. Individual parameters can be adjusted to suit your preferred analytical approach.

For an initial setup, you can start with Custom Settings + Balanced and explore additional parameters as needed.

10. Advanced Customization

For users who want more control over the indicator's behavior, RSI MA Signals provides detailed settings covering:

• RSI Parameters

• Moving Average

• Market Regime

• Sigma Envelope

• Divergence Detection

• Trend Health

• Higher Timeframe Filter

• Trading Scenarios

• Signal Filters

• Historical Tester

• Risk Model

• SL/TP Optimizer

You can begin with the default configuration without studying every available parameter. Advanced settings are available for users who want to investigate specific market conditions and testing approaches.

11. Included Documentation

The package includes documentation to help you understand the indicator and its functionality:

• START HERE: An introduction to the indicator and the recommended starting point.

• QUICKSTART: Instructions for initial setup and the main features.

• USER MANUAL: A comprehensive user guide.

• INPUTS: A reference for configurable parameters.

• MANUAL: An extended technical description of the indicator's logic.

Who Is RSI MA Signals For?

RSI MA Signals may be useful for:

• Beginner traders who want to understand trend direction and ranging conditions.

• Technical analysts who combine RSI and Moving Average analysis.

• Traders who study pullbacks, breakouts, divergences, and reversal setups.

• Experienced users who want to compare individual signal types.

• Traders who evaluate historical trading hypotheses and experiment with risk parameters.

Important Information

RSI MA Signals is an indicator for MetaTrader 5, not an Expert Advisor.

It does not automatically open or close real trading positions.

The Historical Tester and SL/TP Optimizer use virtual historical trades. Their results may differ from live trading because of spreads, commissions, swaps, slippage, liquidity, execution conditions, and other market factors.

Historical performance and optimization results do not guarantee future results. Optimization can lead to overfitting, and any trading strategy should be evaluated on additional data and under realistic execution assumptions.

RSI MA Signals is an analytical tool intended to support independent market research and trading decisions. It does not guarantee profitable trades.