RSI: King of Indicators
As soon as RSI increases above 30, buy at market on the close of that candle. Note that the RSI rollercoaster is designed to squeeze as much profit as possible out of the turn trade. For more on charts, check out our Analyzing Chart Patterns Tutorial.
But it just so happens that I was on this website the other day and there was some stuff on RSI and my drunk brain put 2 and 2 together and thought it may be of some use to you. I couldn't possibly comment cos I am sh1t anyway. I've just found 10, ways that won't work. Megamual Thank god its saturday. Jun 6, , 3: Oh no I am working tomorrow. Originally Posted by megamuel. Jun 6, , Originally Posted by TheBramble. Price is the primary indicator, all others must be derivatives from price against time.
MAs can help confirm trend, but if trend wasn't that clear without an MA to help, it probably isn't there yet.
RSI and a few other indicators can help verify turning points e. These events cannot be used as entry signals well, they can, but not with consistent profitability but can suggest how you might size your position to limit risk, or possible stop-loss distances, that sort of thing. The value of RSI is a bit of a blind alley. Find one, stick with it, make sure it did actually reflect market behaviour and extreme market points.
From my Sharescope charts back to January , this indicator has only been lower than that during 4 other episodes in 15 years - 1 day in May , 3 in January , 2 in June , and 8 in September-October Whatever indicator you use, if it didn't show that date as significant, change it.
Originally Posted by timsk. Tony, Is this view confined to RSI or does it apply to all indicators? If not, which ones pass muster and why? Dear BamBam, The in-depth RSI work initiated as far as I can tell by Cardwell is not a complete piece of work so one should use knowledge and some creative mindset to be able to walk the rest of the lane. So I have created my own thing that does exactly what Brown intended to do when she introduced her solution.
For a few more words a "work around"picture. Last edited by The Dutch Clown; Jun 6, at Originally Posted by Black Swan. What are you looking for the RSI indicator to 'tell' you? I guess it works 7 times out of 10 and false signal can be also evaded with trend analysis sometimes. I find it very useful in my strategy. I don't know if that smoothens out fakeouts,but i guess it also slows down reversal signals. Experiment with the settings so that the peaks and troughs most accurately coincide with peaks and troughs in the price action.
The optimum settings can change depending on the currency and timeframe. I use both but prefer Stochastic and find that 8,3,3 is a good starting point for settings at least to start optimising from. I have used both. I like and use stochastic. Looks like this thread is going in the favor of Stochastic. So what about the 15,3,3 settings? Its a bit more smooth but not that much fakeouts,besides a trend lasts longer usually than 8 candles,so what about those settings?
Depends on the instrument and timeframe. Yea maybe on that low timeframe you need the 8,3,3 setting. I would probably set up the stoch on a 1 hour chart and from there look upon the 15 min if that would be the target. On the other hand a 15 min chart may indicate trend reversal signs for the 1h chart,so Its more important to look on more than 1 timeframe. The criteria that has to be met is very specific and the result is 15m is usually reliable enough to make my first target where I take half my position off.
To me, Stochastic reacts faster to price changes that the RSI which could sometimes result in fakeouts , but the RSI is more accurate when it comes to the overbought and oversold conditions. The RSI is also used to show a bullish bias and a bearish bias, i.
Therefore, it looks like the RSI is more favored than the Stochastic. Neither stochastics nor RSI reacts to price -changes at all.