Trending Assets
Top investors this month
Trending Assets
Top investors this month
$9.9MFollowers
Does the Relative Strength Index (RSI) Indicator Really Work? Let's Backtest It
The Relative Strength Index (RSI) indicator is one of the most popular and basic indicators out there. Most traders know about the RSI. However, does it really work? Find out by reading our substack post!
stockbros.substack.com
Does the Relative Strength Index (RSI) Indicator Really Work? Let's Backtest It
The Relative Strength Index (RSI) indicator is one of the most popular and basic indicators out there. Most traders know about the RSI. However, does it really work? Spoiler: it can be profitable, but it’s probably not the best indicator out there. What is the Relative Strength Index Indicator?
RSI is a momentum indicator that should be coupled with something else. For example, I use RSI to indicate are bulls gaining strong momentum (when RSI crosses 50) and if so then there is an opportunity for bulls to continue to show up until RSI 70 or sometimes even higher (example $FSLR).
When RSI crosses under 50, bulls are losing momentum and we could be in for a slide on the stock to RSI 30. I couple RSI with the 9/21 Ema crossovers for better performance within the indicator.
Thanks for sharing your backtesting!
Already have an account?