Which will work better,rsi(14) or rsi(9)?

#1
Hello
i've a doudt.
I'VE BEEN USING RSI INDICATOR FOR THE LAST 1 YEAR.
Continuously i'm having this doubt doubt.
WHICH WILL WORK BETTER,RSI(14 DAY) OR RSI(9 DAY)? FOR TRADING
PLZ CLARIFY
NUKALA.
 

columbus

Well-Known Member
#2
Hello
i've a doudt.
I'VE BEEN USING RSI INDICATOR FOR THE LAST 1 YEAR.
Continuously i'm having this doubt doubt.
WHICH WILL WORK BETTER,RSI(14 DAY) OR RSI(9 DAY)? FOR TRADING
PLZ CLARIFY
NUKALA.
When the market is choppy or the market range is narrow better to stick
to RSI-9 since it TRENDS slowly (RSI-9 is subjected to variations quite quickly).
When the market range is HIGH ,better to stick to RSI-14 since it takes care
of variations.
 

praveen taneja

Well-Known Member
#3
When the market is choppy or the market range is narrow better to stick
to RSI-9 since it TRENDS slowly (RSI-9 is subjected to variations quite quickly).
When the market range is HIGH ,better to stick to RSI-14 since it takes care
of variations.
Sir I use RSI(50) in 5day chart so far it work ok for me will surely check RSI-9 TOO Is it for intraday or positional too:confused:????
 

columbus

Well-Known Member
#5
Sir I use RSI(50) in 5day chart so far it work ok for me will surely check RSI-9 TOO Is it for intraday or positional too:confused:????
Basically RSI(9,14) is used for INTRADAY purpose.
 

columbus

Well-Known Member
#6
Thank you columbus
Can you plz eloborate your suggestion?
nukala
This quite similar to DMAs.Higher the number of DMA ,smoother the graph.
For example ,50-DMA chart is smoother than 10-DMA chart.
Similarly RSI-9 is RUGGED compared to RSI-14.

DMA.... Daily Moving Average.
 

praveen taneja

Well-Known Member
#7
This quite similar to DMAs.Higher the number of DMA ,smoother the graph.
For example ,50-DMA chart is smoother than 10-DMA chart.
Similarly RSI-9 is RUGGED compared to RSI-14.

DMA.... Daily Moving Average.
sir is there any difference on DMA and EMA????
I watch chart on EMA 10&499:confused::confused:
 

columbus

Well-Known Member
#8
sir is there any difference on DMA and EMA????
I watch chart on EMA 10&499:confused::confused:

DMA is lagging indicator.For example in 10-DMA a PEAK or TROUGH is indicated
after 10 periods ,hence it is given rise to EMA. In EMA the lagging effect is MINIMIZED.DMA is popular because the construction is quite easy.

EMA-10 is often used as SIGNAL LINE since it follows the TREND on small time
frame.

What for you use EMA-499?
 
#9
Thats true.
Basically rsi(9,14) is for short trading.
But rsi9 will give so many false signals.How can i confirm the signal.Can i use STOCHASTIC INDICATOR in conjunction to RSI so that i can get confermation.
Can you suggest me how reliable the crossover generated by stochastic indicator is?
 

AW10

Well-Known Member
#10
DMA is lagging indicator.For example in 10-DMA a PEAK or TROUGH is indicated
after 10 periods ,hence it is given rise to EMA. In EMA the lagging effect is MINIMIZED.DMA is popular because the construction is quite easy.

EMA-10 is often used as SIGNAL LINE since it follows the TREND on small time
frame.

What for you use EMA-499?
Well explained Columbus. Just to add 2 cents from my side
1) DMA gives equal weight to price action of all days. That means, it is just simple average of prices over the period.

2) EMA uses some kind of weights for each day (don't want to complicate this post with forumlas but one can easily find it on the net). Higher weight is given to the recent days. So that makes MA better reflection of current price action.

If you timeframe is long (say 200days) then EMA/DMA gives more or less same value.. but if timeframe is short, (say 10d) then you can see the difference. Specially when last 1 or 2 bars were long. or if there was long bar 10days back and it is just dropping off from calcuation tomorrow.

Happy Trading.
 

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