RSI EA Setup - Setting Up RSI Expert Advisor

RSI EA Setup - Setting Up RSI EA - A trader can come up with an RSI EA based on the RSI indicator explained below.

RSI EA rules can be combined with other Forex technical indicators to come up with other Expert Advisor Forex Robots that trade using rules based on two or more indicators combined to form a trading system.

Relative Strength Index RSI Forex Trading Technical Analysis & RSI Signals

Developed by J. Welles Wilder, explained in the book "New Concepts in Technical Trading Systems".

Relative Strength Index is the most popular indicator and it is a momentum oscillator and a trend following indicator. RSI compares a trading currency magnitude of the recent price gains against its magnitude of recent losses price losses & draws this data on a scale of values which ranges between 0-100.

Relative Strength Index measures the momentum of a currency pair; values above 50 signify bullish momentum while values below 50 center-line signify bearish momentum.

RSI EA Setup

• RSI is plotted as a green line
• Horizontal dashed lines are plotted to identifying over bought and oversold levels are i.e. 70/30 levels respectively.

Forex Trading Technical Analysis & How to Generate Signals

There are several methods used to trade, these are:

50-level Crossover Signals

• Buy signal - when the indicator crosses above 50 a buy/bullish trading signal is given.
• Sell Signal - when the indicator crosses below 50 a sell/bearish signal is given.

Bullish Signal and Bearish Signal - Forex RSI EA Setup