RSI 6/14/24 by HC
3 timeframes of RSIs: 6, 14 and 24 days. This is the extended version of the "standard" RSI script.
How to use it:
It has 3 upper bands and 3 lower bands. The 6-day RSI (orange line) corresponds to 80 and 20 bands, which means if 6-day RSI is over 80, it is an indicator of overbought for short term. Similarly, 14-day RSI use 70 and 30 bands and 24-day RSI use 60 and 40 bands. But these are not the "magic numbers". For different investments, they may have different thresholds. You can change it in the setting.
We all know when RSI is high, it may be an indicator to sell the investments we are holding. However, if 6-day RSI > 80, but 14-day RSI <70, it may not be the good time to sell it right now. We may watch it for a few days. But if all 3 RSIs are above the corresponding upper bands, it may be the time to sell it.
When the orange line down crosses the purple and blue lines, the price is dropping down. On the contrary, when the orange line up crosses the purple and blue lines, the price is probably up.
Let me know if you have any question.
Holly
2020.12.05
How to use it:
It has 3 upper bands and 3 lower bands. The 6-day RSI (orange line) corresponds to 80 and 20 bands, which means if 6-day RSI is over 80, it is an indicator of overbought for short term. Similarly, 14-day RSI use 70 and 30 bands and 24-day RSI use 60 and 40 bands. But these are not the "magic numbers". For different investments, they may have different thresholds. You can change it in the setting.
We all know when RSI is high, it may be an indicator to sell the investments we are holding. However, if 6-day RSI > 80, but 14-day RSI <70, it may not be the good time to sell it right now. We may watch it for a few days. But if all 3 RSIs are above the corresponding upper bands, it may be the time to sell it.
When the orange line down crosses the purple and blue lines, the price is dropping down. On the contrary, when the orange line up crosses the purple and blue lines, the price is probably up.
Let me know if you have any question.
Holly
2020.12.05