The RSI Indicator is one of the WORST Forex Indicators You Could Possibly Use.
The Relative Strength Index, or RSI Indicator is one of the most commonly used Forex trading indicators on Earth. If that alone …
jobalertshop
May 23, 2024
jobalertshop
May 23, 2024
37 Comments
@ralphhicks1743
May 23, 2024 - 1:16 pmInteresting but I find when I use the RSI as a 50 crossover it’s works pretty well in forex I never use over bought and over sold
@alanrice7410
May 23, 2024 - 1:16 pmRSI is complete garbage even for stock trading. The Nasdaq ran up close to 300 percent between Oct 1998 and March 2000. If you were to sell your stocks or short stocks when the RSI showed overbought, you would have been mincemeat. Currencies can also stay overbought for a long time. RSI is no better than reading tea leaves.
@orevathankgod9811
May 23, 2024 - 1:16 pmI'm 28% up using my rsi strategy. Bullish last year, this year January9% and February 19% totaling 28%. For this month March I'm still 5% up
@albertsaxen8309
May 23, 2024 - 1:16 pmRSi is not for reversals, also; it's a gen indicator ..measuring mkt state. You could say there are no trends; just breakouts from one range to the next (which is lol a trend then; so)..
ofc we know when a range is coming; like touchpoints on a trendline..same horizontally; same thing, just the same thing; creates a top, bottom then when it retests ..Then you can start using it ..
No actually you can know when a trend is almost over when financial media starts talking abt it..when you see it on the cover of FT or Newsweek you know it's problly run its course ..
are you/ we insane? Look at like the longest, biga$$ consolidation on the FTSE 100 in ‘17 broke out of a 17-yr base ..and , then, yeah price breaks out ..by default if we trade breakouts what is it breaking out of? Yep ..
.. not exactly; yes, reason for a breakout is ppl buy, then shorts have to cover (ergo; buy) then more ppl join in ..This is what fuels a move; it may have been to trip stops but it’s not ..you make it sound as if reversal traders are the sole cause; no, price breaks out and then goes from there .. it may be Bill at hedge fund XYZ; it also could be like in Market Profile other timeframe participants ..
@albertsaxen8309
May 23, 2024 - 1:16 pmThere is a better way..I had the opportunity to be taught by Head of Technicals for D(eutsche)B(ank) ..if I would’ve flown to Thailand was in-person (lol legit; but physical, yea) ..
yea, I covered this in that vid like I said it's made ppl a bundle of money ..Which is really irrelevant ‘cos we're not s’pposed to use it
I mean if, then for confirmation not as stand-alone, but, again ..
wasn’t the first? 2nd last ..
RSI is what I first turn..ed the corner with, no; I first saw black with it .. but we’re not supposed to use it
RSI on forex yea maybe where there is no OB/OS ..
RSI was created by Welles Wilder..who, btw, also created the ATR, ..and not for stocks he was a silver speculator so it was meant for that, Chicago mkts ..
We're not s'pposed to use RSi; Welles Wilder in his book Concepts says , he publishes many things (not sure why) but, out of the ADX, RSi, ATR and Parabolic SAR the ADXR (essentially ATR measuring, two other variables remaining fixed, volatility and tick size letting us know what is worthwhile to trade THIS IS THE PURPOSE WHOLE POINT OF THE BOOK. WHY IT WAS WRITTEN (he put it in caps) ..
@nasrinsultana8515
May 23, 2024 - 1:16 pmI watched David Paul's video. He said about the Fibonacci Retracement.
@jhoven916
May 23, 2024 - 1:16 pmprice action plus rsi🫡
@s.w.u.1972
May 23, 2024 - 1:16 pmtwo words: hidden divergence
@Luckylearner
May 23, 2024 - 1:16 pmI still use it to check for divergences on a weekly time frame. I agree with you regarding if you trust it you will lose a lot of money
@bikokiambu8428
May 23, 2024 - 1:16 pmMan VP you are the man, started my jouney with your style of trading about 2 years ago and I’ve released that more than anything else it’s the mindset that sets you apart from others. Needless to say I am profitable now and I passed my prop firm challenge with your combined ideologies and the RSI lol. Thank you VP. You’ve changed my life!
@n8t4short
May 23, 2024 - 1:16 pmNobody want this is that bad
@ilyaskhan.1994
May 23, 2024 - 1:16 pmbanks use RSI again personal bias I don't use stops
@Digital_Alchemy
May 23, 2024 - 1:16 pmLove your no BS content brother & have for years. I agree with every word & example in this vid as well. However, you didn't point out the ONLY thing the RSI does correctly. Divergence. To use your 99% / 1% line of logic, if you simply view the RSI in a different manner than the "OB / OS" crap, it is an AMAZING tool. As with any indi, it's numerically based, so your inputs will yield various outcomes, but for anyone viewing this (and you too VP) look at your examples here & use the RSI for divergence entries. I use it with options, so TP is not the same for me as you guys in FX, but $ mgt should be self explanatory. The RSI has been spot on & perfect almost every trade for the past 10 or so years personally. I don't use ANY other indicator & have no need to do so. More is only "eye noise". It's simple, works on any instrument, any timeframe. Love from NC & blessed trading… Jordan
@techzzz121
May 23, 2024 - 1:16 pmI trade ict but i want to build my own algorithm too because i always watch this channel and i use this as confirmation when the rsi passes the mid point
@harissheikh5559
May 23, 2024 - 1:16 pmMost useless video. Instead of cherry picking the scenario you should explain how RSI picks up the data and how that is not logical. I see you have a good mouth like bloomberd reporters. 90% of time you were just blabbering.
@Canopusparadise
May 23, 2024 - 1:16 pmawesome video thanks VP ❤❤
@roysmith9149
May 23, 2024 - 1:16 pmRsi with MA is a deadly combination
@a1pwn
May 23, 2024 - 1:16 pmI use RSI in combination with EMA with levels on that EMA. On the 1 min GOLD chart. Which actually works real nice. No guesswork required.
@anthonyinit
May 23, 2024 - 1:16 pm100% with you I lost great amount of money relying on RSI 🙁 How I wish I found this channel earlier… well, lesson learned.
@tsondang1169
May 23, 2024 - 1:16 pmAgree and disagree. By standard and common shown, using 14 level and 30% and 70% is absolutely disaster for trading.
To better adapt it to 21 level and 38% and 62% for OS and OB respectively is way better and much more accurate.
Better yet wait for 38% angle up to 50% then buy entry is sure thing and wait at 62% angle down to 50% then sell entry.
To confluent this indicator with another trend indicator such as LWMA 55 is absolutely awesome.
@horsehead97
May 23, 2024 - 1:16 pmI am considering using the RSI as my C1. I watched the Williams R video and realized it was the exact same as the fast Stochastic K line, tested that with mediocre results, and then tested the RSI with good results. Using it the opposite of how you’re supposed to as described in the Williams R video which makes it a good chop filter and trend indicator.
@kamo7293
May 23, 2024 - 1:16 pmAs I've started to really get into back testing as many indicators as I can, I sometimes will come across variations of the dozen.
while not the best performing one, having an average win rate of just over 80% across 6 pairs, is a variation on ADX. and I'll be honest I was not expecting it to perform that well. on the same note a macd variation got over 90%.
I even have an rsi one that scored 70%.
tldr don't ignore any indicator
@sergiioneves
May 23, 2024 - 1:16 pmon my way to become a better trader. thanks vp.
@kingwilly8041
May 23, 2024 - 1:16 pm"The RSI indicator is one of the BEST Forex indicators you could possibly use." There, fixed it for you. It's a simple indicator with a relatively simple calculation, doesn't repaint, and works great as a trend indicator if used properly. However, if using it in the manner it is most commonly taught (as you show in the video) then yes, it is one of the worst.
@robotgirl626
May 23, 2024 - 1:16 pmYou know this guy is lowkey funny with his sarcasm😂😂
@ztulsydridu4564
May 23, 2024 - 1:16 pmYou only showed the RSI on the daily. I looked at RSI on all of the default timeframes. Only the 30min chart works well.
@teenspirit1
May 23, 2024 - 1:16 pmyou mean don't use the RSI like this?
@slumz12
May 23, 2024 - 1:16 pmWhat about divergences? Lol
@HardKillaz
May 23, 2024 - 1:16 pmMost of the Dirty dozen I don't use and don't do naturally by just looking at them, which makes me not even want to watch a video saying don't use something I already have no interest in, but knowing you I bet I'll watch it and pick up a gem 💎 or 2 in there.
@martinindasiindasi1266
May 23, 2024 - 1:16 pmI wish VP would just trade live we see how he performs. I find his content attractive to watch and I did for long only to realize that it is the most useless content on forex trading. You cant say all indictors you listed aint working, probably you dont know how to use them. There is no one good/bad indicator, any indicator of choice works as long as you put in the right energy and learn its secrets to apply it.
@Kris_413
May 23, 2024 - 1:16 pmActually this indicator can help you a lot in forex just depend on how you use is. Like when price has been above the 50 line for a while Ik the market is buys and vice versa. Also I use the 80/40 and 60/20 theory.
@SSEnrich
May 23, 2024 - 1:16 pmIt is said here that educators do not know any other indicators than the 12-15 most popular. I listened to one of them. He got a question about alligator. He had no answer. I bet he wondered why people started asking him about animals.
I respect this guy though. He taught me how to backtest properly and he is a real thorough guy who I am sure trades profitably. He has the most hardcore approach to backtesting out of all the educators I have seen out there. I have noticed no names are mentioned here or anywhere else. I can say he is known by the phrase "lower low, lower close".
About using RSI for range bound markets. I am not sure if I would use the RSI for that. My point is that you should have at least one strategy for ranging markets. Otherwise you can be 2 weeks or more without a trade while waiting for the markets to trend again.
@Sagebeme
May 23, 2024 - 1:16 pmThis is the most probably worst way to use the RSI use it like a trend indicator to make it more effective change your settings to 50 buy 50 sold when it's above 50 and the algorithm says buy you may buy and sell vice versa when it hits the 50 it's time to get out of trade
@yusuf8410
May 23, 2024 - 1:16 pmHello vp what if i use an indicator that is not rsi but somehow it has rsi and some other dirty dozen code in it, should i use it or should i pass on?
@BALE_FX
May 23, 2024 - 1:16 pmIt depends on how you use the rsi , it have really helped me since I start using it
@BALE_FX
May 23, 2024 - 1:16 pmThe rsi is the best and adx I used it and am so successful trading with them both and the bollinger band
@Tepalus
May 23, 2024 - 1:16 pmIndicators like the RSI work when you don't make any assumptions on how they should work but rather use the raw data they present.
I have a trading strategy that doesn't rely on the RSI in any way. But to see how it changes my WR I took every value it had when I took trades with my entry strategy while backtesting. Then I made a matrix where I ploted the WRs with different RSI values (ex. filtering out every trade <57, 58, 59, 60, etc. RSI).
What I found is the fact that it can improve a strategy 5-10% based on the right value.
If I find new indicators I never make any assumptions on how they work. I just plot a matrix with every posibility and act on that.
Got me a WR of about 70% with a RR of 1:1 (I know, we don't do WR here but 1:1 is good for seeing how strong a strategy is).
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