More about RSI indicator

[vicjon1995]

Can someone tell me more about the RSI indicator?

[ele020]

Its a typical momentum indicator majorly used for technical analysis which measure the magnitude of recent price change in order to evaluate over selling’s and purchases conditions of a trading instrument. Visually it looks like the an oscillator having reading between 1-100

[TradeFlavor]

RSI in its basic form tells you when something is “overbought” or “oversold”.

Now a deeper insight, on its basic settings, that usually being Anything over 70 for overbought(so sell) and anything under 30 for over sold(so buy).

Now some people I know will adjust the settings to 85 for the overbought signal And 15 for the oversold signal. And that would be the “extremes”

Now here’s why I personally don’t think RSI alone can help you, And why I don’t use it. (notice I didn’t say that you can’t use it that’s completely up to you if you want to use RSI and if it fits into your strategy, great!).

It’s because as you jump from time frame to timeframe the RSI changes. Some timeframes, let’s say the daily, it’s just floating around the mid area and then if you drop to the 1 hour it’s now oversold(meaning buy), but on the 4 hour the trend is showing bearish(meaning sell)

So buy on the 1 hour but I should be selling in the 4 hour?? This is what confuses people. Now I do know people that use it and love it. With other tools it can be helpful, I’m my backtesting it served no purpose for me, but it may for you. Back test and forward test RSI. If it works more than it doesn’t for you, implement it. If not, scrap it.

[Pippo]

You can learn more about RSI here:

Relative Strength Index (RSI)

[vicjon1995]

great explanation .

[Bipin1800]

Hi. Go through the threads below.

RSI and Trend

Hi everyone, I am trading with a small amounts of money and am looking to use RSI, as I have read that it is a ‘forward’ or ‘predicting’ indicator. But would you agree this is true? Can any indicator, which uses past data, as this is all we have, be considered as a predicting indicator? My second problem I have with this is I also read that traders new to trading should ‘trade with the trend’, and I want to stick with this. So I am looking at RSI above 70 or below 30, and a pinbar, as a setup, …

Relative Strength Index help

So, I’m a relatively new forex trader, but I’ve been gaining experience and slowly familiarizing myself with the plethora of tools and strategies that are available to us traders. Recently I discovered the RSI, and I have been having a decent run gaining pips using close to solely the RSI to predict changes in trends, primarily on the 4 hour charts. I want to ask the experts out there, if this is a good strategy, what they think of the RSI and how to best apply the RSI. Detailed answers are grea…

Can rsi alone be a good indicator?

RSI is an excellent indicator. As a matter of fact, generally it’s the only indicator I have on my charts at times. However, if you’re just looking to trade it if it’s in overbought and oversold areas, then you’ll lose your bank roll fast. Price doesn’t move in direct proportion with RSI. Just like the name is called, it’s relative strength. I draw trendlines and look for divergence with RSI. However, everything is validated by immediate price action. Perhaps, I should start a thread illustrat…

[Longwayy87]

Great explanation!

[singy1986]

I’m currently using an ea that uses rsi and although not perfect has generally good results and profits

[vicjon1995]

Really? which one?

[gildrustic]

The RSI indicator is a popular technical analysis indicator that is used to measure the magnitude of recent price changes.

[visiontool]

It helps in evaluating overbought or oversold conditions in the price of a stock or other assets.

[braingoyle]

Forex trading would be a good decision for you. You can customize your trades as per your requirements.

[michalk]

Don’t use it. It’s useless just like most other indicators.

[Knight12]

RSI is an indicator used mostly with technical analysis to find the exact magnitude of the current price changes.

[peacetrolls]

RSI is the momentum oscillator that helps technical traders find out about the bearish and bullish price momentum. In most cases, it is plotted beneath the graph of an asset’s price. When the RSI is above 70%, the asset is considered to be overbought and when it is below 30%, it is considered to be oversold.

[beingnarp]

The relative strength indicator is considered to be one of the best among the trading indicators. A member of the oscillator family, it helps traders like us to determine the trend and market changes, time entries and exits, and a lot more.