what rsi setting is best ?

HaloTrader · Jun 6, 2009, 7:12am

Quote:

Originally Posted by new_trader

'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.

new_trader · Jun 6, 2009, 7:14am

Quote:

Originally Posted by HaloTrader

Everything you say is so negative. Just because you failed at everything doesn't mean others will.

How is what I said negative?

HaloTrader · Jun 6, 2009, 7:16am

Quote:

Originally Posted by new_trader

How is what I said negative?

Well for example if someone has been developing an indicator system and working hard on it and then they see someone like you with lots of stars say to turn them off.... Its not very constructive for them.

Its just negative.

danpayne · Jun 6, 2009, 7:17am

Quote:

Originally Posted by tomorton

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.

Thanks for input always appreciated.

Have been using 20 day but noticwd that on yahoofinance for example there rsi setting looked easier and clearer than mine draw back with that is its on a 20 min delay and after emailing them several times they never did e mail me there settings ,I use sharescope . Any way think Im on the right track with info people have shared with me

danpayne · Jun 6, 2009, 7:21am

Quote:

Originally Posted by new_trader

'OFF' is the setting you should be using for all indicators.

Ok Il take the bate Why off ??

new_trader · Jun 6, 2009, 7:23am

Quote:

Originally Posted by HaloTrader

Well for example if someone has been developing an indicator system and working hard on it and then they see someone like you with lots of stars say to turn them off.... Its not very constructive for them.

Its just negative.

Boo hoo.

anley · Jun 6, 2009, 7:24am

The best settings are probably the ones people don't use.

Or use the settings that everyone uses but use the RSI in reverse. Spotting and trading technical failures is one of the less hard ways to make good money in this game. But you first have to be an expert in said indicator and that will probably take 6-12 months minimum. And how to be an expert, just keep watching it, ie it can't be done via looking at back data.

new_trader · Jun 6, 2009, 7:25am

Quote:

Originally Posted by danpayne

Ok Il take the bate Why off ??

I don't know, you work it out or get Halo Trader to explain it to you.

UNSUBSCRIBED!

Jun 6, 2009, 7:24am	#23
anley Legendary Member Member Since Dec 2003 2,746 Posts	Re: what rsi setting is best ? The best settings are probably the ones people don't use. Or use the settings that everyone uses but use the RSI in reverse. Spotting and trading technical failures is one of the less hard ways to make good money in this game. But you first have to be an expert in said indicator and that will probably take 6-12 months minimum. And how to be an expert, just keep watching it, ie it can't be done via looking at back data.

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