RSI - Relative Strength Index (Wilder) & RMI - Relative Momentum Index
- Thread starter endgame
- Start date
Even though I'm new to using the RSI and RMI, I'm starting to see such patterns. In your experience, would you say the RSI and RMI are more useful as to identifying patterns on longer term charts? Trying to use them for day trading or even shorter term swing trades seems to be more unreliable than say using them for weekly or even monthly charts. It seems to me, the more you can smooth out the indicator lines, the better off you'll be.
Thanks for your input.
No, please don't. Why not try a thread of your own or perhaps start a blog?
I don't use the RMI at all. For day trading commodities and long term(weekly) stock I prefer TSI (True Strength Index), for long term trading commodities I use both standard MACD for monthly/weekly and RSI on dailies. I use indicators now for more of confirming Price Action, as I simple don't need it any more to show divergences, you see a million charts in your lifetime, not hard to see when price is slowing down by the distances between pivots getting tighter. But indicators can show me abnormalities that happen even though price might be showing me a pattern of continuation, so that's a time I will pass on a signal since it is not 100% clear signal. Also indicators sometimes show price to be much stronger as in "hidden divergences", and that tests out well, might want to load up.
When using RSI on daily charts, if divergences are shorter duration that 20 days, it is rather unreliable, so if you take a position using it, best to see what the seasonality is doing or get an option for a hedge.
I'm writing in my new thread , KFI target analysis see below the address:
http://www.elitetrader.com/vb/showthread.php?s=&postid=3854375#post3854375
There, i used my own created indicator, KFI, to find the target of instrument price.I've used it since 2009 .
Have a look. Hope be helpful.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3854375#post3854375
There, i used my own created indicator, KFI, to find the target of instrument price.I've used it since 2009 .
Have a look. Hope be helpful.
I only started using it recently since it helps smooth out the "bad ticks" throughout the day. If some knucklehead puts a market order in by accident (especially on smaller volume and lower priced equities) and overpays, spiking the price up, I like to filter it out as much as possible.
I've been locked into using the MACD, STO, and the two RSIs on just about every time frame for a while, and something needs to change. Quite honestly, I never use the STO much anymore, so in all likelihood, that will be the one that gets replaced.
If I get to the point where I've seen a million charts, that'll be a welcomed confirmation I haven't gone broke.
This contradicts my thinking behind using the RMI to smooth out the patterns. This may very well be an issue worth looking into since I've been getting handed losses more often recently. Definitely an issue on the larger volume and higher priced stocks that aren't as volatile.
I tend to trade daily charts only for the purpose of making a trade for that day. Quick hits, minimize loss if needed, and get out. Some of my biggest losses were due to stibbornness and leaving a day trade on longer when I knew full well it was based on a daily chart decision.