Hi all,
Are MACD and RSI are the same?
I am using both indicators and if they are the same then I don’t need them…I might move to ifish2 which identifies overbought and oversold levels.
Help please?
Can you show us a chart with those two?
depending on your perception, they can be similar or dissimilar. having said that, both can show overbought or oversold levels.
what is ifish2? do you know how it is computed? maybe you can include that in your chart as well.
Basically they are both oscillators choose one or the other & learn how it works.
The MACD is my favorite used properly.
Or if you understand IFish then use that.
Basically RSI shows overbought/oversold levels and MACD shows the power of Bulls and Bears.I prefer using RSI because it does both.
Ok I am not giving a definitve measurement here, but if your curious as how to compare 2 systems or 2 indictors this is my method. Just put them face to face on the same data, here its the daily chart of fiber. So now I am using the standard MACD cross as a signal and the RSI hook from an over bought or over sold condition back above/below the 30/70 lines. in my chart as you can see the blue arrows indicate the price action for the MACD (i forgot one cross so i added it in), and then the orange lines and red arrows are for the RSI.
So lets take an analytical look as opposed to just peoples opinions or feelings. I prefer data. Now this is a short example and the data set here is not large enough to be conclusive but i am not here to do your work for you. Just to show you how i would approach the problem. X’s mean that the indicator and price did not make a successful signal and that Os were a successful signal. So we can see here that the MACD had many more signals 11, with only 1 incorrect one. I use that loosely as the 2 clustered together near the end of the chart are convoluted but you could have made a few pips in there. However as we are pragmatic we will say the hit rate included 2 losers and 9 winners so a hit rate of 81.8% . Now the RSI had 4 signals all of which were to go long out of the over sold region. Only 1 of them being successful, for a hit rate of 25%. As you can see here the macd and RSI both got long on the RSI’s only successful signal. So take what you want from that over this small daily sample size of 6 months from late january to now. I encourage you to take an analytical look at these indicators and deciding which one preforms best for you and how you will use them. Dont just listen to the opinions of the board and others. study the charts and decide based on data driven analysis. Not hearsay.