Is RSI the best over/under bought indi ? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Please help to make this indi into a Multiple Time Frame (MTF) indi 3 replies

Coder needed for small fee- fixing every Indi/Idea for Indi 2 replies

Repainting indi into Non-Repainting Indi - Help 2 replies

Consecutive candles indi combined with volume & spread indi 13 replies

Need help to convert this indi into MTF indi 3 replies

Attachments: Is RSI the best over/under bought indi ?
Exit Attachments

Is RSI the best over/under bought indi ?

  • #1
  • First Post: Apr 1, 2011 3:28pm Apr 1, 2011 3:28pm
Well,is it ?
  • #2
  • Apr 1, 2011 4:00pm Apr 1, 2011 4:00pm
Its really a matter of opinion. You have to look at how RSI is calculated then decide if that type of calculation fits with your trading. All oscillators use a slightly different calculation but the vast majority compare the current close with the close of x days (or bars) ago.

I personally like a slow stochastic set at 14,3,3. But it really doesn't matter.

If YOU think it is the best then...its the best...for you.
  • #3
  • Apr 1, 2011 4:29pm Apr 1, 2011 4:29pm
I find RSI useless myself. I have seen many times RSI just max out when something swings hard in either direction. In trending markets that are just oscillating in nice waves you can see by the shape of the time/price chart what RSI would be telling you anyways.
  • #4
  • Apr 1, 2011 4:50pm Apr 1, 2011 4:50pm
Quoting gspajon
Its really a matter of opinion. You have to look at how RSI is calculated then decide if that type of calculation fits with your trading. All oscillators use a slightly different calculation but the vast majority compare the current close with the close of x days (or bars) ago.

I personally like a slow stochastic set at 14,3,3. But it really doesn't matter.

If YOU think it is the best then...its the best...for you.
Fair point,works for me ,just wondering if theirs something better i should know about ?
  • #5
  • Apr 1, 2011 6:31pm Apr 1, 2011 6:31pm
Try this version of rsx.

http://www.forexfactory.com/showpost...8&postcount=42
  • #6
  • Apr 1, 2011 7:35pm Apr 1, 2011 7:35pm
In up-trends momentum indicators can stay in overbought conditions longer than oversold and in down trends it is the opposite.
The greatest enemy of a good plan is the dream of a perfect plan.
  • #7
  • Apr 1, 2011 8:06pm Apr 1, 2011 8:06pm
I like RSI. It can work fairly well in ranging markets. I also use it for divergence. But like all indicators, it is not to be relied on solely.

Here's a good example of when RSI failed miserably in a strong trend. RSI went into oversold territory around the 83.00 level on 4 hour A/J chart. It eased a little and then never looked back. The pair rallied another 400 odd pips.

Attached Image (click to enlarge)
Click to Enlarge Name: aj-4hour-2apr11.png Size: 46 KB
Nothing worth having is easy.
  • #8
  • Last Post: Apr 2, 2011 3:15am Apr 2, 2011 3:15am
Quoting Patience
I like RSI. It can work fairly well in ranging markets. I also use it for divergence. But like all indicators, it is not to be relied on solely.

Here's a good example of when RSI failed miserably in a strong trend. RSI went into oversold territory around the 83.00 level on 4 hour A/J chart. It eased a little and then never looked back. The pair rallied another 400 odd pips.

Attachment
I only use it as a part of an entry set up,with my set up,id have entered
around 80,and would be still in the trade.
0 traders viewing now