Basic Question on RSI

[Hawk12]

Im quite new to trading. i like to spread bet and my chosen platform is IG index. They changed their charting software recently and ever since then if I load up data the rsi is drastically different to when it is plotted if I actively view it. e.g. I view gold with 5 minute candles and the rsi plots. I then reload the same chart and the rsi is completely different.

As im fairly new to trading I just wanted to double check that the RSI should not change retrospectively?

 

[counter_violent]

Im quite new to trading. i like to spread bet and my chosen platform is IG index. They changed their charting software recently and ever since then if I load up data the rsi is drastically different to when it is plotted if I actively view it. e.g. I view gold with 5 minute candles and the rsi plots. I then reload the same chart and the rsi is completely different.

As im fairly new to trading I just wanted to double check that the RSI should not change retrospectively?

A lot of indicators re-paint.

PAINTING - An indicator is said to be "painting" or "re-painting" when the signal continues to change (paint) on the current bar...Bar[0].

Only when the Bar[0] finally closes and becomes Bar[1] does the indicator place the fixed signal and not repaint.

That's the general rule as most all indicators re-paint...but be careful...many indicators will re-paint 3-5 bars back

 

[Hawk12]

A lot of indicators re-paint.

PAINTING - An indicator is said to be "painting" or "re-painting" when the signal continues to change (paint) on the current bar...Bar[0].

Only when the Bar[0] finally closes and becomes Bar[1] does the indicator place the fixed signal and not repaint.

That's the general rule as most all indicators re-paint...but be careful...many indicators will re-paint 3-5 bars back

Three to five bars! I mean i understand that the bar your on obviously thats active but how the hell do you trade using three to five bars thats 15 to 25 minutes. I look at negative a positive divergence forming, re load the graph and it hasn't even made a touch on the overbaught oversold levels.

Not only that but the change is instantaneous upon loading! So if I wait and don't reload the chart its different to instantly reloading the chart, that leads me to believe its a software problem.

 

[intradaybill]

RSI is sensitive to initial conditions. You ahve to load at least 250 bears to get the same values. See this:

Relative Strength Index - Wikipedia, the free encyclopedia

 

[Black Swan]

Im quite new to trading. i like to spread bet and my chosen platform is IG index. They changed their charting software recently and ever since then if I load up data the rsi is drastically different to when it is plotted if I actively view it. e.g. I view gold with 5 minute candles and the rsi plots. I then reload the same chart and the rsi is completely different.

As im fairly new to trading I just wanted to double check that the RSI should not change retrospectively?

What tf and what setting on the rsi? Why not use the advanced package?

Whats the strat, use it as extra confirmation when in 30/70 zones?

 

[dan79]

I have a really basic question relating to RSI. I have read that it is possible to profitably trade using patterns and trendlines on RSI, just like we do it on price charts. Has anyone tried using that? I have been working out on this, and my initial research suggests that the method has promise. Breach of a trendline, or break-out from a range is often a leading indicator of price movement. Seniors please commen

 

[trende]

Yes you are rite, RSI is used as as an trend reversal indicator. Since the market scenario is not same all the time you have to utilize technical indicators in the different possible ways. Accordingly I am using RSI for number of purposes, like for possible buying, selling and of course trend reversal signals. I am also using RSI free stock Screener/tutorial to enhance my research from

Free EOD Overbought/Oversold Stock screening by RSI, Stochastic...

 

[YoshihiroUK]

Hi. I've also got a basic question about RSI if anybody can help please?

I look for RSI over a 14 day period as standard. What confuses me is that RSI can be very different over a 1 day chart, 5 day chart, 1 month chart, 3, 6 and 9 month chart. Can somebody explain why please?

Thanks

 

[the hare]

What confuses me is that RSI can be very different over a 1 day chart, 5 day chart, 1 month chart, 3, 6 and 9 month chart. Can somebody explain why please?

Lets assume you are using a 14 period RSI

In simple terms the indicator is using data from the last 14 bars on the chart. So if you apply the indicator to a daily chart, you'd be using data from the last 14 days, (rsi uses close price IIRC)

If you apply the indicator to a 1 minute chart, the indicator is using data for the last 14 minutes, and obviously the close price of a candle 14 minutes ago, will generally be significantly different to a close 2 weeks ago.

You get different values, becuase the input values that the indicator uses, are completely different.

 

[YoshihiroUK]

The Hare, that makes much more sense now. Thank you.

So if I am looking to place a trade based upon an RSI for timing, which RSI reading should I use?

e.g. 1 day RSI might be 32, 1 week RSI 41, 3 month RSI 65 etc

Thanks for your help

 

[intradaybill]

RSI is not a timing indicator. It's interpretation depends on context. I suggest you read the latest ETF report of price action lab. They have some good comments there about RSI and how it is related to gambler's fallacy.

 

[YoshihiroUK]

Thanks Bill. I will take a look.