REW Signals Advanced RSI

Overview

REW Signal is a technical indicator for MetaTrader 5 that generates BUY and SELL entry signals by combining three components operating inside the RSI sub-window: a raw RSI line, a Fast Moving Average of RSI, and a Slow Moving Average of RSI.

A signal fires only when both the RSI line and the Fast MA cross the Slow MA in the same direction within a configurable time window. This dual-confirmation requirement significantly reduces false positives compared to a standard RSI crossover approach. An optional higher-timeframe trend filter further narrows entries to those aligned with the dominant market direction, and an optional RSI zone filter ensures crossovers originate from momentum extremes rather than the neutral mid-range.

The indicator is designed for traders who need a reliable, momentum-based entry tool that adapts cleanly to different timeframes, instruments, and risk preferences without requiring manual workarounds when switching between chart periods.

How Signals Are Generated

Signal generation requires up to four conditions to be satisfied simultaneously. Understanding each one allows the trader to tune the indicator effectively.

  • Dual crossover: Both the raw RSI line and the Fast MA must cross the Slow MA in the same direction. For a BUY, both must cross upward. For a SELL, both must cross downward. The two crossovers do not need to occur on the exact same bar, but they must occur within the gap window defined by the Max Bars Gap parameter. If the second crossover arrives more than that many bars after the first, the pair is discarded. The signal is placed at the bar where the second crossover completes.
  • Zone confirmation: When the RSI zone filter is enabled, the crossover must originate from an extreme zone. BUY signals require the RSI to have been at or below the Oversold level within the crossover window. SELL signals require a touch of the Overbought level.
  • Trend alignment: When the higher-timeframe trend filter is enabled, signals must align with the prevailing trend direction on the selected filter timeframe. Trend direction is determined by the slope of an EMA applied to closing prices on that timeframe. BUY signals require a neutral or bullish slope. SELL signals require a neutral or bearish slope.
  • Signal timing: The indicator places a signal only at the exact bar where the second crossover is confirmed. This prevents late emissions and ensures that signals shown on closed bars remain stable.

Indicator Components

  • RSI line Yellow: The standard Relative Strength Index calculated over a configurable period and applied price type.
  • Fast MA Blue: A short-period moving average of the RSI values. It reacts quickly to changes in momentum and serves as the trigger line.
  • Slow MA Red: A longer-period moving average of the RSI values. It acts as the baseline that both the RSI and Fast MA must cross for a signal to be valid.
  • Fill zone: The area between the Fast MA and Slow MA is filled with a semi-transparent color. A green fill indicates bullish momentum. A red fill indicates bearish momentum.
  • Sub-window arrows: Arrow markers appear inside the RSI sub-window at the Slow MA level of the signal bar.
  • Price chart arrows: Optional arrows are drawn on the main price chart above or below the corresponding candle.
  • Horizontal level lines: Three reference lines are drawn automatically at the Oversold level, the midpoint, and the Overbought level.
  • Information panel: A compact panel displays the current RSI value, MA values, local trend direction, and the most recent signal timestamp.

Input Parameters

RSI Settings:

  • RSI Period: 10
  • Applied Price: Close
  • Oversold: 30.0
  • Overbought: 70.0
  • Use RSI Filter: true

Fast MA Settings:

  • Period: 9
  • Method: EMA
  • Shift: 1
  • Color, Style, Width: Blue, Solid, 1

Slow MA Settings:

  • Period: 45
  • Method: LWMA
  • Shift: 0
  • Color, Style, Width: Red, Solid, 1

Fill Zone Colors:

  • Bull Fill Color: Dark Green
  • Bear Fill Color: Dark Red

Signal Settings:

  • Max Bars Gap: 5 (Maximum bars allowed between the two crossovers)

Trend Filter:

  • Use Trend Filter: true
  • Filter Timeframe: H1
  • Trend EMA Period: 90

Chart Setup

When the indicator is first added, it can automatically apply a dark professional theme to the chart. This includes Background Color Dark navy, Bull Bear Candle Colors Teal Pink-red, Hide Grid true, Chart Shift true, Shift Percentage 20, and Hide Volume true.

Trend Filter in Detail

The trend filter determines direction by reading the slope of an EMA on the chosen filter timeframe. Data is fetched in a single bulk read per calculation cycle, avoiding the per-bar overhead that can slow down indicators. The auto-disable behavior when the chart timeframe equals the filter timeframe is intentional to avoid redundant calculations.

Performance

On the first calculation pass, the indicator scans the configured number of historical bars. On each subsequent tick, only the last two or three bars are recalculated, keeping CPU load low in live trading. Graphical elements are fully suppressed during optimization runs.

Recommended Usage

The default parameters are suitable as a starting point for intraday and swing trading on instruments such as XAUUSD and major Forex pairs on M15 to H4 charts. Enabling the RSI zone filter produces fewer signals but of generally higher quality. A lower Max Bars Gap 1 to 3 requires the RSI and Fast MA crossovers to be nearly simultaneous. The higher-timeframe trend filter works best when the filter timeframe is two to four steps above the chart timeframe.

Installation and Compatibility

Compatible with all MetaTrader 5 instruments and all timeframes from M1 to MN1. No DLL calls or external data feeds are required. For support, please contact me directly through the MQL5 messaging system.

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