RSI outcome in different timeframes

us3r001

New member
Hi guys, I was backtesting some study resources about exit points.
I don't trust my TA so I prefer being guided by some indicator.
I find best in my case are not MACD or custom clouds or stochastic RSI,
but the old fashioned RSI. I use overbought signal 70.
Anyway, my question is the following.

RSI outcome is different by different timeframes.
Please, explain me ... why ?

I got around this by following the 1minute chart
because I consistently found out the 5min or the 10min didn't alerted ~at the peak.
Until today.
Specifically, on GME August 24 I found RSI on the 1min didn't alerted at 177, the 5min did.

Now I really need to know how these RSI work please )
 
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Solution
As with any indicator, you need to understand exactly how the RSI works. My recommendation here would be to read the source of the RSI, J. Welles Wilder, who designed the RSI back in the 70s with his outstanding book "New Concepts in Technical Trading Systems" (1976). In it he describes in very easy to follow detail exactly how he calculates each of his very popular and famous indicators. If you are serious about using any of wilder's work, please buy the book. It is worth it to have on your shelf to refer to. I have been a disciple of Wilder for 30 years, and only use his indicators in all of the trading systems that I have developed over the years. The popularity of his work over 50 years is a testament to how great and ground...
As with any indicator, you need to understand exactly how the RSI works. My recommendation here would be to read the source of the RSI, J. Welles Wilder, who designed the RSI back in the 70s with his outstanding book "New Concepts in Technical Trading Systems" (1976). In it he describes in very easy to follow detail exactly how he calculates each of his very popular and famous indicators. If you are serious about using any of wilder's work, please buy the book. It is worth it to have on your shelf to refer to. I have been a disciple of Wilder for 30 years, and only use his indicators in all of the trading systems that I have developed over the years. The popularity of his work over 50 years is a testament to how great and ground breaking his work was....PS - Once you see how to indicator is calculated, you will see why there are differences over different time frames.
 
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