RSI Reversal Indicator: A 7-Bar RSI At 80 And 20

Written by Dominic Walsh · Published 8 Jul 2026 · Last updated 9 Sep 2026

The rsi reversal indicator is a deliberately short RSI. `Period` defaults to `7` rather than the usual 14, which makes the line swing much harder. The reference levels move out to match, with `OverboughtLevel` at `80` and `OversoldLevel` at `20`. Fast readings need wider bounds to stay meaningful.

This build ships as a compiled .ex4 for MT4 and .ex5 for MT5.

Platforms	MT4 (.ex4) + MT5 (.ex5)
Chart window	Separate window
Plots	1: RSI
Alerts	popup, push notification, email, sound
Inputs	9

What the Rsi reversal Indicator draws on the chart

RSI is a single crimson line in its own pane below price.

The line runs between 0 and 100, as any RSI does.

Readings above `OverboughtLevel` and below `OversoldLevel` are what the alerts watch.

Nothing draws on the price chart itself, so it stacks cleanly under other tools.

• RSI: plot, crimson

How the Rsi reversal Indicator calculates its values

Summing gains and losses

The code walks `Period` bars back through the close differences. Positive changes add to gain and negative ones add to loss. Seven bars is a small sample, so a single large candle moves the result noticeably.

Folding the ratio into a reading

rs takes gain over loss. RsiBuf then takes 100 minus 100 over 1 plus rs. When the window holds no losing bar the ratio has no meaning, so the code writes 100 directly. That is why the line can sit flat at the top during a straight run.

Why the levels moved out

A 14-bar RSI rarely reaches 80 or 20, which is why 70 and 30 became the convention. At `Period` `7` the line reaches those wider bounds regularly. Setting `OverboughtLevel` `80` and `OversoldLevel` `20` keeps the alert count sensible.

How to read the signals

A short RSI reaches its extremes far more often than a 14-bar one.

The line flattening at 100 means the window held no down close at all.

An extreme reading describes momentum, never a turn that has happened.

Raise `Period` toward 14 if the pane looks too jumpy to read.

Alert channels in this build: popup, push notification, email and sound, one message per closed bar.

`EnableAlerts` ships on with `EnablePopup` carrying the message. `EnablePushNotify`, `EnableEmail` and `EnableSound` are off by default, and `SoundFile` names the clip. The guard allows one message per closed bar.

Every Rsi reversal Indicator input

Core settings

Setting	What it does	Default
Period	Bars in the RSI window, default `7`. Raise it toward 14 for a calmer line.	7
OverboughtLevel	Upper reference, default `80`. Lower it to 70 if you also raise the period.	80
OversoldLevel	Lower reference, default `20`.	20

Alert settings

Setting	What it does	Default
EnableAlerts	Master alert switch, default `true`.	on
EnablePopup	Terminal popup, default `true`.	on
EnablePushNotify	Mobile push, default `false`.	off
EnableEmail	Mail delivery, default `false`.	off
EnableSound	Sound playback, default `false`.	off
SoundFile	Clip played when sound is on, default `alert.wav`.	alert.wav

Settings that fit your chart

A seven-bar reading covers less than two hours on M15 and half a trading day on H1. That short memory suits intraday work where a stretched move matters for the next few bars. On daily charts the same period covers under two weeks, and the line spends much of its time pinned at one end or the other.

When the Rsi reversal Indicator fails

A short window reaches 80 and 20 during ordinary moves, not only extreme ones.

The reading pins at 100 whenever the window holds no down close, which flattens the signal exactly when a move is strongest.

An extreme reading can hold for many bars while price keeps going the same way.

Copy the compiled Rsi reversal Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.

Download the Rsi reversal Indicator for MT4 and MT5

The zip holds the compiled Rsi reversal Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.

FAQ

Why does Period default to 7 rather than 14?

Because this build is aimed at shorter holding periods. Seven bars reacts roughly twice as fast as the usual fourteen, so the line reaches its bounds while a move is still developing. The cost is a noisier pane that needs wider reference levels to stay readable.

Why are OverboughtLevel and OversoldLevel at 80 and 20?

Because a seven-bar reading swings harder than a fourteen-bar one. The familiar 70 and 30 pair would trigger constantly at this period. Moving the bounds out to `80` and `20` keeps the count of extreme readings roughly where a longer RSI would put it.

What makes the RSI plot flatten at 100?

A window with no down close in it. rs needs a loss figure to divide by, and there is none, so the code writes 100 directly rather than dividing by zero. The line sits there until the first losing bar enters the seven-bar window.

Should I raise Period on a daily chart?

Probably. Seven daily bars is under two weeks of history, which leaves the line at one extreme or the other much of the time. Raising `Period` toward 14 and pulling the levels back to 70 and 30 gives a reading that behaves the way most traders expect.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Rsi reversal Indicator as one input. Always backtest before trading live.