RSI Bars Indicator: Forex Oscillator


RSI-Bars is an oscillator, developed by IFC Markets in 2014 as the modification of Relative Strength Index (RSI). RSI-Bars characterizes a stability of a price momentum and allows a definition of a trend potential.
A distinctive feature of RSI-Bars is that this indicator takes into account the volatility of a considered instrument within the selected timeframe - values of RSI-Bars are defined with account of price OPEN/HIGH/LOW/CLOSE (OHLC) values and are displayed in the form of chart bars. This allows avoiding of false breakdowns of oscillator trend lines and that’s why traders may use methods of a chart analysis more efficiently in this case.

Metatrader 4 Download

Download RSI-Bars for Metatrader 4

Installation guide:
  • Download and extract the zip archive with indicator file .ex4;
  • Open the data directory from the main menu of Metatrader 4 terminal:File =>Open Data Folder;
  • Put an indicator file into the folder MQL4/Indicators of Data Folder;
  • Restart the Metatrader 4 terminal;
  • In order to insert an indicator, open the group of custom indicators in the main menu: Insert=>Indicators=>Custom indicator.

Advantages of RSI-Bars oscillator

In contrast to the classical Relative Strength Index, developed by J.Wilder, RSI-Bars evaluates an internal volatility. Minimal and maximum limits of bars are constructed on the basis of 4 prices (OHLC). A calculated set is used for the selection of a minimum and maximum value of RSI-Bars. Then a bar structure is formed.

Technical indicators: RSI Bars

An analysis of a candlestick price chart in some cases allows avoiding of a trend false breakdowns. It happens due to the account of additional price information and it internal volatility. At the same way RSI-Bars takes into account a true range of price oscillations, not only a characteristic value of a given timeframe. Due to this property, RSI-Bars allows a correct and convenient use of a chart technical analysis.
A comparative analysis of RSI and RSI-Bars is represented on the figure below – we used H4 candlesticks of a most volatile pair, GBP/USD. As it can be seen, RSI(14) has shown and additional breakdown in contrast with RSI-Bars (14). Moreover, RSI-Bars has detected later and therefore more correct finishing of a downtrend.
The use of RSI-Bars is demonstrated in trade examples of everyday analytics releases of IFC Markets.

technical indicators: chart

RSI-Bars Indicator


  • The oscillator works most efficiently in a flat motion. A lower and higher bounds of oscillator values are introduced subjectively (for example 30% and 70%) and correspond to overbought and oversold levels;
  • RSI-Bars can take extreme values during a trend motion. That’s why in this case a use of overbought and oversold levels is incorrect;
  • RSI-Bars allows a definition of standard chart analysis instruments - figures, lines of support and resistance, etc. In this case the indicator should be used for a confirmation of technical analysis. We should take into account that RSI-Bars can give preliminary signals of a trend change;
  • Divergence is the strongest signal of RSI-Bars – opposite directions of price and oscillator movements are detected in this case. This signal is a harbinger of a possible trend weakening;
  • Values of RSI-Bars lie between 0% and 100%.

How to use in trading platform

Use indicators after downloading one of the trading platforms, offered by IFC Markets.