RSI vs. Stochastics

Discussion in 'Technical Analysis' started by Drew07, Mar 20, 2007.

  1. Drew07


    Which indicator is better to use as an OB/OS indicator when trading the minis intraday? Does anyone use them in conjunction with one another to find entries and exits or do you find its better to use them alone?
  2. Neither. Use support and resistance. By the time your rsi/stoch/uber-oscillator has rolled up/down from ob/os, you will have missed your entry...
  3. Why not StochRSI?

    It's Stochastocs applied to RSI.
    Williams %R also works fine.
  4. Drew07


    Thanks guys, I'll look into these indicators.
  5. One of the key elements to be aware of when using oscillators, such as the RSI, is the market trend will affect the range of the readings oscillator.

    In other words, if the market is strong, the RSI will peak at high levels and turn up just under midrange levels. For example, a 14-bar RSI will peak above 75, but turn up from around 40 during an uptrending market.

    On the other hand, if the market is in a downtrend, then the RSI will peak around 60 and bottom around 25. You need a set of rules for an oscillator for up-, down- and trading range markets.

    You can read more about this here with an example.
  6. razor99


    i used to use all those indicators but it was basically a bunch of noise(for me). i use support/resistance and moving averages.
  7. There is a fundamental difference : The peaks of the various RSIs occur on the same day, even if you use RSI(10) or RSI(50). The peaks of the Stochastic depend on the period selected and will have a significant delay for high period values.