Hellow guys …i would like to know the best indicator between STOCHASTIC and RELATIVE INDEX am really confused using them togather at the same time.
They alway give different signals
(Am still learning and am on a demo account)
Also i would like to know what does all the settings on both the indicators mean…
Oscillators all report the same thing based on a percentage of deviation from the mean. Traders then develop strategies to trade that deviation based on many factors.
Most oscillators are bounded like the two you have mentioned but the CCI is not bounded and will report the true range of the price action.
Just my 1 pip opinion.
Thanks brother but what is the cci
Abel, CCI is an unbound oscillator that like all oscillators attempts to put a finger on momentum strength. You can also set the horizontal signal lines within the CCI. I used to set mine at zero, + 113 & +225 and -113 & -225. I would use the CCI in conjunction with a Double Bollinger Band.
You can trade with it several different ways, from the zero line out or the outer signal line inward. As all indicators measure deviation from a mean I choose to trade from the +2% deviation inward. You would call this mean reversion trading. All price action will return to the mean.
Their is much information published about this indicator and several Youtube videos.
Timing Trades With the Commodity Channel Index