Eagle re Yen Divergence
I am using the RSI 14 (the traditional RSI)
and there is no divergence
You are using the RSI 5
This is a much faster indicator
so it would show many more divergences
The faster the indicator the more it twists and turns and the more false readings (whipsaws)
This is why Matrix uses both the fast and conventional TSI
The Fast turns on a dime but he waits for the traditional to turn before getting positioned
which one is the ‘Right” one to use for divergences ?
Does Edwards and Magee clarify this ?
Thanks for the explanation re RSI setting. The larger the RSI (14) the slower the indicator reacts, and the more reliable the indication. For trends, use RSI 14. For day trades, RSI 5 is a better choice. Correct?
The RSI 5 conveys the same as the RSI 14. However, since the 5 is more sensitive than the 14, the divergences will show up quicker. Let us see how this plays out.
The 5 is nothing more than an exaggeration of the 14