The Relative Strength Index (RSI) is a built-in MT4 momentum oscillator that moves between 0 and 100. It flags when price has moved quickly in one direction — readings above 70 are often called overbought, below 30 oversold — and traders watch it for momentum shifts and divergence.
How to add the RSI in MT4
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Open the indicator
In MT4, click
Insert ▸ Indicators ▸ Oscillators ▸ Relative Strength Index. -
Set the period
Leave the period at the default 14 or adjust it. The overbought/oversold levels are 70 and 30 by default.
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Click OK
The RSI plots in a separate window below your chart, oscillating between 0 and 100.
How to read the RSI
- Overbought / oversold — above 70 or below 30 hints at possible exhaustion (not a guaranteed reversal).
- The 50 line — RSI holding above 50 suggests bullish momentum; below 50, bearish.
- Divergence — price making a new high while the RSI doesn't can warn of weakening momentum.
Limitations
In a strong trend the RSI can sit above 70 (or below 30) for a long time — selling just because it's "overbought" is a classic mistake. Treat the RSI as one input among several, always with a stop loss, and test it on a demo. Nothing here is financial advice, and most retail traders lose money.
Test the RSI on a free demo
Add the RSI and other indicators to a free MT4 demo and watch how they behave in different markets before going live.
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Related
See the best MT4 indicators guide. Other indicators: MACD, Stochastic, and Moving Average.
Frequently asked questions
What is the RSI?
The Relative Strength Index (RSI) is a momentum oscillator that moves between 0 and 100, measuring the speed and size of recent price changes. Readings above 70 are often called overbought and below 30 oversold.
How do I add the RSI in MT4?
Click Insert ▸ Indicators ▸ Oscillators ▸ Relative Strength Index, set the period (default 14), and click OK. The RSI appears in a sub-window beneath the chart, with lines at 70 and 30.
What do overbought and oversold mean?
Overbought (RSI above 70) means price has risen quickly and may be stretched; oversold (below 30) means it has fallen quickly. They flag potential exhaustion, but in a strong trend the RSI can stay overbought or oversold for a long time.
What is the best RSI setting?
The default 14-period RSI is the most widely used. Shorter periods react faster and give more signals; longer ones are smoother. There's no single best setting — test it on a demo for the instrument and timeframe you trade.
Is the RSI a reliable buy/sell signal?
No indicator is a reliable signal on its own. The RSI is a momentum gauge, not a guarantee — it works best alongside trend analysis and risk management, and it can mislead in strong trends. Most retail traders lose money.
Trading foreign exchange and contracts for difference (CFDs) carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. You could lose some or all of your deposited funds; do not trade with money you cannot afford to lose. Past performance is not indicative of future results. Nothing on MT4Download.com is financial, investment, or trading advice. Consider your circumstances and seek independent advice if needed.