Technical indicator #6

RSI

Relative Strength Index

An indicator that shows, from 0 to 100, whether momentum leans toward rising or falling. It's the first oscillator beginners learn.

Importance★★★

TypeOscillators

Common settingsPeriod 14 with lines at 70 and 30 is common

MT5（FUNDED7）Built in

1A 30-second chat

JUDITHSo I just sell when it goes over 70!

JADEIt's not that simple. In a strong trend, RSI often stays above 70 while price keeps rising

JUDITHSo it's useless?

JADEIt works well in sideways markets. When the trend is strong, the trick is to check the direction with a moving average first.

2Here's how it looks

On a scale of 0 to 100, it shows whether the momentum leans toward rises or falls

3Just check this

70 or above

A sign of overbought. After rising too far, price often takes a breather

30 or below

A rough sign of oversold. It has fallen too far and tends to bounce

The 50 line

Above 50 means upward momentum is stronger; below 50 means downward momentum is stronger

4Reading basics

▲ Sign it may riseRising from 30 or below back toward 50 → a sign that downward momentum is fading

▼ Sign it may fallFalling from 70 or above toward 50 → a sign that upward momentum is fading

Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.

5Prop firm watch-outs

If you trade against the trend just because RSI says "overbought," losses pile up on strong trend days. In a prop firm, a losing streak is scarier than a single loss, so if you use RSI to trade against the trend, set a limit first (for example, up to 2 times a day).

Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ）

6How to show it in MT5

These are real screens from the Android MT5 app.Swipe sideways, or use the button below to go next

1 / 5

📱 Smartphone (iPhone & Android)

Tap the wavy-line icon (Indicators / インディケータ) at the top of the chart screen

Tap "f+" to the right of Main chart (メインチャート). (Indicators shown in the lower window open in a separate window automatically)

Tap "Relative Strength Index" in the list

Enter the numbers and tap Save (保存) at the top right

💻 Computer

In the top menu, click Insert (挿入) → Indicators (インディケータ) → Oscillators → Relative Strength Index

When the settings window (Parameters / パラメータ) opens, enter the numbers below

Tap OK to finish. You can also drag it onto the chart from the Navigator (ナビゲーター) on the left

🔧 Numbers to enter (common settings)

✓

Period

✓

Levels

70 and 30 (set by default)

✓

Where it shows

Shown in a separate window below the chart

You can change or add level lines in the Levels (レベル) settings. For the steps, see the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.

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Common settings are general guides. How to show them depends on the chart software.