Which moving average is best with RSI?

Relatively short-term moving average crossovers, such as the 5 EMA crossing over the 10 EMA, are best suited to complement RSI. The 5 EMA crossing from above to below the 10 EMA confirms the RSI’s indication of overbought conditions and possible trend reversal.

How do you use RSI crossover?

The RSI crossover strategy defines the crossover of RSI at a specified value to indicate overbought (>= 70) and oversold (<= 30) signals. For other RSI values, be patient and wait for the buy or sell signal. It is much easier to use graphs to observe changes in values.

What are the best moving averages to complement RSI?

RSI is often used to obtain an early sign of possible trend changes. Therefore, adding exponential moving averages ( EMAs) that respond more quickly to recent price changes can help. Relatively short-term moving average crossovers, such as the 5 EMA crossing over the 10 EMA, are best suited to complement RSI.

What are the best momentum indicators to use with RSI?

One technical indicator that can be used in conjunction with the RSI and helps confirm the validity of RSI indications is another widely-used momentum indicator, the moving average convergence divergence ( MACD ).

Should you use RSI or MACD when trading?

That means it is beneficial to get confirmation from another trade signal before acting on RSI. The MACD can confirm that it is really time to buy or sell when RSI indicates a security is oversold or overbought. Moving average crossovers can also help RSI users to pinpoint the right time to make a trade.

What is smoothed RSI and how does it work?

Smoothed RSI applies the moving average procedure to RSI itself, making the indicator less twitchy and leading to fewer false positives. Long-term RSI uses RSI on a longer time scale, such as weeks or months, to identify a larger trend and ensure that short-term RSI trades are going in the right direction.