RSI indicator, do they work? | Bitcointalksearch.org

DarkDays

legendary

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Quote from: Mianae on September 04, 2019, 04:10:22 PM

Indicators work especially RSI given the market condition isn't manipulated. In times of heavy manipulation of either pump or dump or in an extreme bear season, indicators don't work as the market doesn't obey any of it it moves solely on its trend.

Well the market is always apparently manipulated, yet nobody is able to say who is doing it! The RSI tends to sink into the oversold territories at the base of each bear run, and climbs to its highest value at the height of each bull run. It is extremely rare to see a very low, or very high RSI without there being significant market momentum in the days prior.

Therefore, if you see the RSI fall to its lowest in history, BUY. If you see it reach its highest, set your damn stop loss and prepare for the worst.

Mianae

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Indicators work especially RSI given the market condition isn't manipulated. In times of heavy manipulation of either pump or dump or in an extreme bear season, indicators don't work as the market doesn't obey any of it it moves solely on its trend.

coinporch

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Quote from: ishirut009 on September 04, 2019, 11:19:34 AM

Rsi indicator by all means is only a lgging indicator which does not have any sense at all if you don't know how to read price action alone. Because indicators are just use for confirmations of the trend.

i agree with you,,
price actions is better than any indicators my friend
but to learn about price actions is not easy,,
anyway RSI is a good indicator if we can use it properly

ishirut009

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Rsi indicator by all means is only a lgging indicator which does not have any sense at all if you don't know how to read price action alone. Because indicators are just use for confirmations of the trend.

virasisog

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Quote from: beaxchange on June 08, 2019, 12:32:40 PM

The RSI indicator is a momentum indicator. It works by dividing the initial percentage gain by percentage loss over the period used by the indicator, typically fourteen days, and then smoothing the results. The point is, the RSI, like all the other momentum based indicators, is based on the price of the underlying market and a moving average to smooth the results.

What’s more likely to act as a catalyst for a market — an RSI reading or a real-world exogenous or endogenous event?

The 5% wait patiently for a market to set up. As cryptocurrencies trade through time, prices are driven above and below zones where entry can not only provide a quantified amount of risk but also market feedback if the position is unprofitable.

In contrast the 95%, the inconsistent majority, buy highs and sell lows. Yes, sometimes this can work, and yes, it is a strategy at one specific point during the price cycle, that allows good risk management and market feedback, but most of the time buying the high and selling the low is highest risk lowest reward strategy a speculator can deploy.

RSI is widely use by traders to track price movements. RSI is just one of the indicators
but for me its the most useful one to combine with PA yet it is not fully reliable in a bear market.

disconnectme

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Quote from: cryptonx on June 08, 2019, 12:48:12 PM

as far i know, all indicators is follow the price, not the price follow the indicators, include RSI mate
so, we just need to combine RSI with others indicators, then, when all indicators give us a confirmations to buy or sell, we just do what we see Wink

remember the best way is always take a realistic profit target in our trade, then cut your loss short Wink

I do like your summation, the most important thing about trading is to make more profit than loss at the end of the day. For me RSI is an indicator for monitoring overbought and oversold market and this helps to get in and out of a position though it helps with more indicator like MACD

ikicha

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I using this indicator for more one years.
This is very good indicator and a standart indicator tool for trading.
I only use this indicator to looking about overbought and oversell and working goods

bigcash2011

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In my experience most of the indicators including the RSI do work but not always and secondly we need to understand that these indicators are basically for the confirmation of entry exit so if multiple indicators are indicating long only then we can enter and same is the case for shorts and secondly the direction of our indicators should also match our technical analysis.

Mig-23

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RSI ad Bollinger bands are the most commonly used indicators and even it is the recommended for the beginners so it mush be actually working when people recommending it for the people to start with.But indicators are just for the idea so we cannot say market is going to move in that direction how the indicators show to us.

TA is not much important for long term trading so if you are not comfortable with using indicators just stick with what you understand about trading.

10c

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Quote from: hdclover on June 08, 2019, 01:07:56 PM

Depends on how you use it!
It does work in indicating relative strength but don't make your decisions solely on these. Why? Overbought and oversold zones work only in the short time frame. In the long term, a coin can still be in the overbought zone if it had a massive crash and a slight bump.

this definitely applies to any indicator. Those trader is stupid who chooses only one indicator for his trading

hdclover

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Depends on how you use it!
It does work in indicating relative strength but don't make your decisions solely on these. Why? Overbought and oversold zones work only in the short time frame. In the long term, a coin can still be in the overbought zone if it had a massive crash and a slight bump.

10BTCaDay

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I have friends traders who talk a lot about this indicator. They say it's a super good tool to trade.

puremage111

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Well to be honest
If you are using RSI solely without anything else, it wouldn't really work all the time

It is much suitable to use as a point to support your entry rather than a point to enter a market without something else
Perhaps you may see that a price went overboard and went overbought

But one thing that you must know is, when a market had a sign of overbought, it means people are buying it crazily
Which also means that the momentum is showing upward instead of the opposite
If you are going to short if for short term you might be fine, long term might be a problem there

So, Yes it may work but not 100%

funchiestz

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Quote from: beaxchange on June 08, 2019, 12:32:40 PM

The RSI indicator is a momentum indicator. It works by dividing the initial percentage gain by percentage loss over the period used by the indicator, typically fourteen days, and then smoothing the results. The point is, the RSI, like all the other momentum based indicators, is based on the price of the underlying market and a moving average to smooth the results.

What’s more likely to act as a catalyst for a market — an RSI reading or a real-world exogenous or endogenous event?

The 5% wait patiently for a market to set up. As cryptocurrencies trade through time, prices are driven above and below zones where entry can not only provide a quantified amount of risk but also market feedback if the position is unprofitable.

In contrast the 95%, the inconsistent majority, buy highs and sell lows. Yes, sometimes this can work, and yes, it is a strategy at one specific point during the price cycle, that allows good risk management and market feedback, but most of the time buying the high and selling the low is highest risk lowest reward strategy a speculator can deploy.

All these indicators guide us to make a prediction. However, none of these indicators give sufficiently precise results.

cryptonx

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Futurov

as far i know, all indicators is follow the price, not the price follow the indicators, include RSI mate
so, we just need to combine RSI with others indicators, then, when all indicators give us a confirmations to buy or sell, we just do what we see Wink

remember the best way is always take a realistic profit target in our trade, then cut your loss short Wink

beaxchange

newbie

Activity: 17

Merit: 1

The RSI indicator is a momentum indicator. It works by dividing the initial percentage gain by percentage loss over the period used by the indicator, typically fourteen days, and then smoothing the results. The point is, the RSI, like all the other momentum based indicators, is based on the price of the underlying market and a moving average to smooth the results.

What’s more likely to act as a catalyst for a market — an RSI reading or a real-world exogenous or endogenous event?

The 5% wait patiently for a market to set up. As cryptocurrencies trade through time, prices are driven above and below zones where entry can not only provide a quantified amount of risk but also market feedback if the position is unprofitable.

In contrast the 95%, the inconsistent majority, buy highs and sell lows. Yes, sometimes this can work, and yes, it is a strategy at one specific point during the price cycle, that allows good risk management and market feedback, but most of the time buying the high and selling the low is highest risk lowest reward strategy a speculator can deploy.

Topic: RSI indicator, do they work? (Read 156 times)