RSI vs. CCI

Which indicator works best for detecting over sold and over bought conditions, RSI or CCI? Or do RSI and CCI simply have different pros and cons, per say? And if it really does come down to pros and cons, what are those pros and cons? Thanks.

The person that should be answering that question is YOU, and the answer should come from your undarstanding of how each of the 2 indicators are calculated and how relevant those calculations are in determining OB/OS market conditions. Not trying to be an ass, just trying to help...

Yoda, Sergiu is absolutely correct.

Indicators are derived from price action, and simply offer an alternative summary of it. Much depends on how they are calibrated, for example RSI(10) is going to produce a completely different curve to RSI(20).

Much depends on how you define OB/OS within the context of a (supposedly profitable) system. So the answer to your question is that sometimes RSI will work “best”, and sometimes CCI. Just like sometimes entering using an RSI(10)-based signal will result in a more profitable trade than an RSI(20)-based signal, and vice versa.

At the end of the day, you must enter a trade on a price bar, and any indicator can be optimized to provide an earlier or later entry into each emerging trend.

Indicators are nothing more than tools, and how you interpret and use them is entirely in your hands.

David