RSI abcd

1. How the Indicator Works

Combines the classic RSI with automatic detection of ABCD harmonic patterns.

Key Components

• Standard RSI (adjustable period)
• Peak and Trough Markers (arrows)
• ABCD Patterns (green/red lines)
• Overbought (70) and Oversold (30) Filters

2. MT5 Setup

period = 14; // RSI period size = 4; // Maximum pattern size OverBought = 70; // Overbought level OverSold = 30; // Oversold level Filter = USE_FILTER_YES; // Confirmation filter

3. Trading Strategy

3.1. Buy Entry (Bullish ABCD)

Conditions:

1. RSI forms:
   • Trough (A) → Peak (B) → Higher trough (C)
   • D above Oversold (30) but below C
2. Confirmation: Green line connecting A-B-C-D

Targets:

• TP1: 61.8% of B-C
• TP2: 100% of B-C

Stop Loss: Below D

3.2. Sell Entry (Bearish ABCD)

Conditions:

1. RSI forms:
   • Peak (A) → Trough (B) → Lower peak (C)
   • D below Overbought (70) but above C
2. Confirmation: Red line connecting A-B-C-D

Targets:

• TP1: 61.8% of B-C
• TP2: 100% of B-C

Stop Loss: Above D

4. Practical Example (EUR/USD H1)

1. Bullish ABCD Pattern detected after RSI exits Oversold.
2. Confirmation with green line.
3. Entry at D, SL below the last trough.
4. TP1 reached at 61.8%.

5. Risk Management

• Risk per trade: 1-2% of capital.
• Avoid major news events.
• Use trailing stop after TP1.

6. Conclusion

Effective indicator for traders combining RSI and harmonic patterns. Test on a demo account before live trading.

Next Steps:

• Adjust parameters per asset.
• Combine with moving average for confirmation.