"Evenning all"
what is the best rsi setting for spotting diveregence early ? I use the 20 day but not totally convinced,
"Evenning all"
what is the best rsi setting for spotting diveregence early ? I use the 20 day but not totally convinced,
Tony,. . . the question is largely pointless.
As is RSI to be honest…
RSI when used on a index, composite or sector for comparison with the instrument being traded makes some sense, but few use it this way. The vast majority just stick it on a single instrument and play the same settings and levels and use the textbook interpretation.Tony,
Is this view confined to RSI or does it apply to all indicators? If not, which ones pass muster and why?
Cheers,
Tim.
Hi Dan,
I can't help you because A. I am drunk (as usual) and B. I am not and have never been a consistantly profitable trader. 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. Here it is Bulkowski's RSI If its not of any use to you then I appologise, if it is, then I am great. You will find a lot of people on here don't rate indicators and think they are a load of ********. I couldn't possibly comment cos I am sh1t anyway. Good luck man
What are you looking for the RSI indicator to 'tell' you? I have it on my charts simply as a re-confirmation of all my confirming signals/indicators; macd, cci, stochastic, rsi, 3/4 moving and exponetial averages on candlestick chart... all these lagging and leading indicators do (IMHO) is help to confirm/predict where the price action will be/is at...
FWIW mine is set on 14, irrespective of whether I'm trading pairs or indices, and I 'use' it to re-confirm stochastic movement on a 15 min chart when I'm entering a trade. Occasionally it 'works' as a leading indicator (for me) but more often than not simply as part of a series helping me to pull the trigger...
"Evenning all"
what is the best rsi setting for spotting diveregence early ? I use the 20 day but not totally convinced,
'OFF' is the setting you should be using for all indicators.
Everything you say is so negative. Just because you failed at everything doesn't mean others will.
How is what I said negative?![]()
Price is the primary indicator, all others must be derivatives from price against time. so decide market mode and your entry/exit TA from price alone. 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.g. when you see them diverging from price trend, or when indicators reach an extreme value. 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. 20 is commonly used and pretty good for swing trading.
e.g. See 20RSI for the FTSE100 09/03, a significant low in the market, but porice alone didn't tell us that. 20RSI was at 21.052, its lowest level for over 2 years. From my Sharescope charts back to January 1994, this indicator has only been lower than that during 4 other episodes in 15 years - 1 day in May 2006, 3 in January 2003, 2 in June 2002, and 8 in September-October 1994. 5 episodes in 15 years (and, neatly, a total of 15 days) so this is on average a once-every-three-years event. Clearly, a significant point had been reached, and price rose 25% from there. Whatever indicator you use, if it didn't show that date as significant, change it.