RSI is a good indicator for buy or sell signals.
1 °) The best buy signals are near to 0 (0 <RSI <15); and
the best sell signals are near to 100 (100> RSI > 80).
2 °) RSI [2] (Close) is more reliable than RSI [2] (Open);
RSI [1] (Close) is less reliable than RSI [2] (Open) or RSI [2] (Close).
3 °) RSI signals for buying or selling vary from one market (or pair of currencies) to another; That is, the signals for USD/CHF or EUR/USD or GBP/USD or BTC/USD will be different, although between (0 < RSI <15) to buy and (100 > RSI > 80) to sell.
Hence the need to make several tests with different values and binary combinations of RSI before execution in autotrading or as assisted trading signals.
4 °) RSI cannot be reliable on its own as an indicator of buy/sell signals. RSI combines well with MACD or with two pairs of “Moving Average”. Example 1: RSI(2) with MACD(5,9,1). Example 2: RSI(2) with Average[20](Close) and Average[3](Close).
Good to hear, hello!
MacDoppel D.K
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