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..."Evenning all"
what is the best rsi setting for spotting diveregence early ? I use the 20 day but not totally convinced,
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?
Megamuel you really are a diamond,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
Ive been using it set on 20 day bar look back on 5 min and daily also 30 and 15 min chart ,it helps in conjuction with other criteria ,I wouldnt personally use it as a sole indicator to unreliable. I like to trade divergrnce as well and use the stoch,etc for that and was looking for a more divergence sensetive setting yeah I know I can backtest all these things but with limited resaerch time a point in the right direction can save time searching through a million websites of sh** and luckily Megamuel pointed me straight to a webite thats exactly what I was looking forWhat 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...
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