RSI Overbought/Oversold Trading System in MQL5

Introduction

Imagine steering through market momentum with the precision of a master navigator, using a trusted indicator to pinpoint reversals in overextended price zones. The RSI Overbought/Oversold EA is your advanced momentum navigation tool, designed to automate trading by leveraging the 14-period Relative Strength Index (RSI, "RSI_Handle", "iRSI()") to identify overbought and oversold conditions. A buy signal triggers when RSI crosses above the oversold level (30, "oversoldLevel") after being below it ("rsiDataArray[0] > oversoldLevel", "rsiDataArray[1] < oversoldLevel"), opening a 0.01-lot buy trade ("obj_Trade.Buy()") without stop loss or take profit. A sell signal occurs when RSI falls below the overbought level (70, "overboughtLevel") after being above it ("rsiDataArray[0] < overboughtLevel", "rsiDataArray[1] > overboughtLevel"), initiating a sell trade ("obj_Trade.Sell()"). Trades are limited to one per new bar ("totalBars", "iBars()") to prevent overtrading, with no magic number for position tracking. This strategy suits traders targeting mean-reversion in range-bound markets, requiring robust risk management due to the absence of risk controls.

This article is crafted with a professional, engaging, and seamless narrative, flowing like a well-calibrated momentum navigation system, designed to inform and captivate readers. Tailored for both novice and experienced traders, we’ll dissect each code component with clear, precise explanations, as if guiding an apprentice navigator through a reversal-trading project. With vivid examples—like trading EURUSD—and a polished tone, we’ll explore how the EA initializes, detects signals, executes trades, and ensures cleanup. Using a precision momentum navigation metaphor, this guide will illuminate the code’s technical rigor, empowering you to capture reversals with confidence. Let’s activate the system and begin this trading expedition!

Strategy Blueprint

Let’s outline the EA’s momentum framework, like drafting specifications for a reversal navigation system:

• Indicator Setup: Initializes a 14-period RSI ("iRSI()", "RSI_Handle") to monitor overbought (>70, "overboughtLevel") and oversold (<30, "oversoldLevel") conditions.

• Signal Detection: Triggers a buy when RSI crosses above 30 after being below it ("rsiDataArray[0] > oversoldLevel", "rsiDataArray[1] < oversoldLevel") or a sell when RSI falls below 70 after being above it ("rsiDataArray[0] < overboughtLevel", "rsiDataArray[1] > overboughtLevel"), using "CopyBuffer()".

• Trade Execution: Opens 0.01-lot buy/sell trades ("obj_Trade.Buy()", "obj_Trade.Sell()") without stop losses or take profits.

• Trade Limitation: Restricts trades to one per new bar ("iBars()", "totalBars") to avoid overtrading.

• Execution: Processes signals on each tick ("OnTick()") with RSI data from "rsiDataArray".

• Enhancements: Adding stop losses, take profits, or a magic number could improve risk control and trade tracking. This framework automates mean-reversion trading with precision, leveraging RSI for targeted reversals.

Code Implementation

Let’s step into the momentum navigation control room and dissect the MQL5 code that powers this RSI Overbought/Oversold EA. We’ll guide you through each phase like expert navigators, ensuring the narrative flows seamlessly with professional clarity and engaging precision that captivates readers. We’ll cover initialization, signal detection, trade execution, and cleanup, with detailed explanations and examples—like trading EURUSD—to make it accessible for beginners. Each phase will build on the last, crafting a cohesive technical narrative that transforms code into a compelling reversal-trading project. Let’s power up the system and begin!

Phase 1: Constructing the Framework—Initialization

We start by building the trading system, initializing the RSI indicator for momentum detection.

//+------------------------------------------------------------------+
//|                              RSI Overbought/Oversold EA.mq5      |
//|                           Copyright 2025, Allan Munene Mutiiria. |
//|                                   https://t.me/Forex_Algo_Trader |
//+------------------------------------------------------------------+
#property copyright "Copyright 2025, Allan Munene Mutiiria."
#property link      "https://t.me/Forex_Algo_Trader"
#property version   "1.00"

#include <Trade/Trade.mqh>
CTrade obj_Trade;

int RSI_Handle;
double rsiDataArray[];
int totalBars = 0;

double overboughtLevel = 70.0;
double oversoldLevel = 30.0;

int OnInit(){
   RSI_Handle = iRSI(_Symbol,PERIOD_CURRENT,14,PRICE_CLOSE);
   return(INIT_SUCCEEDED);
}

The system begins with the #property header, establishing copyright and contact details, like calibrating a momentum navigation system’s core. The "OnInit()" function initializes the setup, including "Trade/Trade.mqh" for trading via "obj_Trade". It creates a handle for the 14-period RSI ("RSI_Handle", "iRSI()", applied to close prices) and defines variables for data storage ("rsiDataArray"), bar tracking ("totalBars"), and thresholds ("overboughtLevel"=70.0, "oversoldLevel"=30.0). No error handling is implemented for the RSI handle, assuming successful initialization. Returning INIT_SUCCEEDED signals, “System is ready, let’s navigate momentum!” This primes the EA for RSI-based trading, like a navigation tool poised for action.

Phase 2: Mapping Momentum Signals—Loading RSI Data

With the system active, we load RSI data to detect overbought/oversold signals, like scanning for momentum extremes.

void OnTick(){
   int bars = iBars(_Symbol,PERIOD_CURRENT);
   if (totalBars == bars) return;
   totalBars = bars;
   if (!CopyBuffer(RSI_Handle,0,1,2,rsiDataArray)) return;

In the signal mapping hub, "OnTick()" runs every tick, checking for new bars ("iBars()", "totalBars") to limit processing to once per bar. It loads 2 bars of RSI data ("CopyBuffer()", "RSI_Handle", buffer 0, starting at bar 1) into "rsiDataArray", exiting if the copy fails ("!CopyBuffer()") without logging. For example, on EURUSD H1, it loads RSI values (e.g., 28.5 for bar 1, 32.0 for bar 0), preparing for signal detection, like charting momentum shifts.

Phase 3: Navigating Trades—Executing RSI Signals

With RSI data loaded, we execute trades based on threshold crossings, like capitalizing on momentum reversals.

void OnTick(){
   // ... (data loading)
   if (rsiDataArray[1] < oversoldLevel && rsiDataArray[0] > oversoldLevel){
      obj_Trade.Buy(0.01);
   }
   else if (rsiDataArray[1] > overboughtLevel && rsiDataArray[0] < overboughtLevel){
      obj_Trade.Sell(0.01);
   }
}

In the trade navigation hub, "OnTick()" checks RSI transitions. A buy signal triggers when RSI crosses above the oversold level ("rsiDataArray[0] > oversoldLevel"=30, "rsiDataArray[1] < oversoldLevel") from below, opening a 0.01-lot buy ("obj_Trade.Buy()") with default parameters (no stop loss or take profit). A sell signal occurs when RSI falls below the overbought level ("rsiDataArray[0] < overboughtLevel"=70, "rsiDataArray[1] > overboughtLevel") from above, initiating a 0.01-lot sell ("obj_Trade.Sell()"). For example, on EURUSD H1, RSI moving from 28.5 to 32.0 triggers a buy at the current ask (e.g., 1.2007), like locking onto a reversal signal. Note: The commented conditions ("/*!(rsiDataArray[0] < oversoldLevel)*/", "/*!(rsiDataArray[0] > overboughtLevel)*/") are redundant due to the existing checks.

Phase 4: Shutting Down the System—Cleaning Up Resources

As our expedition concludes, we shut down the system, ensuring resources are cleared.

void OnDeinit(const int reason){
   IndicatorRelease(RSI_Handle);
   ArrayFree(rsiDataArray);
}

In the shutdown control room, "OnDeinit()" releases the RSI handle ("RSI_Handle", "IndicatorRelease()") and frees the data array ("rsiDataArray", "ArrayFree()"), like dismantling a momentum navigation system’s components. This ensures a clean chart, ready for the next task.

Why This EA is a Momentum Navigation Triumph

The RSI Overbought/Oversold EA is a reversal-trading triumph, automating trades with precision, like a master-crafted momentum navigator. Its 14-period RSI signals ("iRSI()", "rsiDataArray") and per-bar trade limits ("totalBars") offer clarity, with potential for stop losses, take profits, or magic numbers. Picture a buy on EURUSD at 1.2007 after RSI exits oversold—strategic brilliance! Beginners will value the simplicity, while experts can refine its high-risk framework, making it essential for mean-reversion traders.

Putting It All Together

To deploy this EA:

1. Open MetaEditor in MetaTrader 5, like entering your momentum navigation control room.

2. Copy the code, compile with F5, and verify no errors—no navigator wants a faulty system!

3. Attach the EA to your chart, enable AutoTrading, and watch it execute RSI-based trades.

4. Monitor trades for overbought/oversold signals, as no specific logging is implemented, like navigation diagnostics.

5. Test on a demo account first—real capital deserves a trial run!

Conclusion

We’ve engineered an RSI Overbought/Oversold Trader that automates momentum reversals with precision, like a master-crafted navigation system. This MQL5 code is your strategic tool, brought to life with a seamless, professional narrative packed with clear explanations and vivid examples to fuel your trading ambition. Whether you’re a novice navigator or a seasoned market strategist, this EA empowers you to capture reversals with confidence. Ready to trade? Watch our video guide on the website for a step-by-step creation process. Now, navigate your trading path with precision! 🔍

Disclaimer: Trading is like navigating complex markets—challenging and risky. Losses can exceed deposits. Test strategies on a demo account before going live.