Is the RSI indicator any good?

[Lisa 10]

I have read numerous counts of articles about RSI. I also did a search on google about this indicator. So far I have received two opinions. Some claim that this indicator is stupid. Others claim a simple strategy using the RSI is highly profitable with the correct money management.

 

For example, one post I read was watching for a higher low, higher RSI, and a MACD crossover. This is supposed to be a high probability trade.

 

Any comments or thoughts on this?

[Soultrader 12]

It really depends on how you use it in combination with your setups. I wouldnt trust the RSI alone. However, I have one setup in which I look for a RSI divergence at a key pivot point. I like seeing price and RSI divergence for confirmation only. This is not a trading signal but just a confirmation of a particular setup I use.

 

I wouldnt consider the RSI to be a stupid indicator. You just need to apply it correctly in your setups. Also have a entry and exit plan for the particular setup.

[Fxtrader06 10]

I have read numerous counts of articles about RSI. I also did a search on google about this indicator. So far I have received two opinions. Some claim that this indicator is stupid. Others claim a simple strategy using the RSI is highly profitable with the correct money management.

 

For example, one post I read was watching for a higher low, higher RSI, and a MACD crossover. This is supposed to be a high probability trade.

 

Any comments or thoughts on this?

 

The only information I look for in the RSI is divergence as well.

[boze 10]

Any indicator is useless without understanding how to use it. RSI is not a trend following indicator. It is a helpful tool in finding possible tops and bottoms. Remember, use it as a confirmation of your analysis and not as a trading signal. It will save you tons of money.

[strtedat22 10]

It really depends on how you use it in combination with your setups. I wouldnt trust the RSI alone. However, I have one setup in which I look for a RSI divergence at a key pivot point. I like seeing price and RSI divergence for confirmation only. This is not a trading signal but just a confirmation of a particular setup I use.

 

I wouldnt consider the RSI to be a stupid indicator. You just need to apply it correctly in your setups. Also have a entry and exit plan for the particular setup.

 

PERFECT...thats the same way i use it...couldnt of said it any better

[MC 10]

Every indicator is good if you have defined an edge with it and execute signals without imparting your emotional wisdom.

 

That being said, as already mentioned the main purpose most traders use RSI for is divergence at peaks and bottoms or at key levels. I do the same thing on my setups.

 

Divergence at key levels gives you a high probability trade and if you back it with certain volume traits as another filter your odds are even higher.

 

Good trading.

[brownsfan019 17]

Here's a question ... how does a thread that is well over one year old get new life? Normally a spammer would employ this and obviously not the case here, but I also wonder how/why a thread that is so old gets new life again... It's not meant to be a dig at anyone, I'm seriously just curious. I've never understood how that happens on forums.

[MC 10]

Here's a question ... how does a thread that is well over one year old get new life? Normally a spammer would employ this and obviously not the case here, but I also wonder how/why a thread that is so old gets new life again... It's not meant to be a dig at anyone, I'm seriously just curious. I've never understood how that happens on forums.

 

WOW...I didn't even notice. Thats a ancient bump. :o

Now you got me wondering also, I guess someone actually did use the search tool perhaps? :o

[zdo 20]

Bumped or not :\ - in general RSI will cause far more trouble than benefit - unless one really knows how (and when!) to use it.

RSI(c,2)...:did I say that?:

[Dr Who 10]

It is like anything, know what they are by studying them and their limitations. There are benefits which has taken me a while to truly understand.

[mister ed 10]

Here's a question ... how does a thread that is well over one year old get new life? Normally a spammer would employ this and obviously not the case here, but I also wonder how/why a thread that is so old gets new life again... It's not meant to be a dig at anyone, I'm seriously just curious. I've never understood how that happens on forums.

 

I think it happens when someone has the good sense and skill to execute a search and find that the topic they want to discuss already has a thread devoted to it. Or, like you said, its a spammer (and not the case here). Now does anyone want to buy my $3,000 RSI system?

 

Moving on...

[tradeit007 10]

I find RSI useful to flag the end of a trend. When it tends above 80, you

can expect a pullback soon.

[Guest forsearch]

I find RSI useful to flag the end of a trend. When it tends above 80, you

can expect a pullback soon.

 

Not necessarily.

 

If it stays in overbought or oversold condition for an extended period of time, it may be telling you that it is in a solid directional trend.

 

This is dependent upon the setting and input that you use for the RSI, of course.

[SunTrader 10]

Bumped or not :\ - in general RSI will cause far more trouble than benefit - unless one really knows how (and when!) to use it.

RSI(c,2)...:did I say that?:

 

 

Someone mentioned that a couple of years back and I thought huh?

Then I gave it a look and now I that is the only setting I use. And like others have said only in combination with other confirmation.

[Guest forsearch]

On a daily chart, yes, RSI (Close, 2) that may be great benefit. Anyone have useful settings for intraday, tick or volume charts for the RSI?