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Lisa

Is the RSI indicator any good?

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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?

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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.

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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.

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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.

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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 :cool:

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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. :)

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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.

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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

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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?:

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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...

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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.

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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.

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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?

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