Regarding RSI, if conditions for MACD and a basing pattern are occurring, is price action likely to rise when RSI is rising and crosses the 50% line or when RSI is in an overbought position?
I like to use RSI more for tracking price action in the indexes versus trading chart setups. But that's just a personal preference. MACD is built off moving averages which helps me w/ trading the trend.
RSI is built off price action (where price is closing relative to recent historical ranges), and is good for spotting divergences. That makes it better suited for mean reversion traders in my opinion.
The problem with RSI for breakout traders is that it would quickly move to overbought territory on the breakout, which might make you second guess taking the trade.
Regarding RSI, if conditions for MACD and a basing pattern are occurring, is price action likely to rise when RSI is rising and crosses the 50% line or when RSI is in an overbought position?
I like to use RSI more for tracking price action in the indexes versus trading chart setups. But that's just a personal preference. MACD is built off moving averages which helps me w/ trading the trend.
RSI is built off price action (where price is closing relative to recent historical ranges), and is good for spotting divergences. That makes it better suited for mean reversion traders in my opinion.
The problem with RSI for breakout traders is that it would quickly move to overbought territory on the breakout, which might make you second guess taking the trade.
Thanks and this is helpful.