What are the recommended settings for the RSI indicator when analyzing cryptocurrency price movements?

3 answers

• Dec 17, 2021 · 3 years ago
  The recommended settings for the RSI indicator when analyzing cryptocurrency price movements depend on the specific time frame you are analyzing. For shorter time frames, such as intraday trading, a shorter period length, such as 14, is commonly used. For longer time frames, such as daily or weekly charts, a longer period length, such as 28 or 30, may be more appropriate. As for the overbought and oversold levels, a common approach is to set the overbought level at 70 and the oversold level at 30. However, these levels can be adjusted based on the specific cryptocurrency and market conditions.
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• Dec 17, 2021 · 3 years ago
  When it comes to the RSI indicator and analyzing cryptocurrency price movements, there is no one-size-fits-all answer for the recommended settings. It ultimately depends on your trading strategy and the specific cryptocurrency you are analyzing. Some traders prefer shorter period lengths, such as 9 or 14, for more responsive signals, while others opt for longer period lengths, such as 28 or 30, for smoother signals. Similarly, the overbought and oversold levels can be adjusted based on your risk tolerance and market conditions. Experiment with different settings and find what works best for you.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we recommend using a period length of 14 for the RSI indicator when analyzing cryptocurrency price movements. This is a commonly used setting that provides a good balance between responsiveness and smoothness. As for the overbought and oversold levels, we suggest using 70 for overbought and 30 for oversold. However, it's important to note that these settings are not set in stone and can be adjusted based on your trading style and the specific cryptocurrency you are analyzing. Remember to always consider multiple indicators and factors when making trading decisions.
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