Just as charts can be different 'intervals'' (1 hr, 1day, 1 week, 1 month, etc.)
so can Indicators.
When you look at a chart, say a daily, and bring up the Indicators, most charting
a 'standard' set of intervals.
The standard for an RSI is '14'. That refers to the number of days that are being incorporated into
the formula used to compute the RSI.
I have spent a considerable amount of time experimenting with Indicator interval selection
(Akin to a Hot Rodder fiddling with carburation to change performance)
I have previously confessed to loving the ADX, but my absolute 1st Love is the CCI.
On my charts you will see it in 2 different settings, the 10 and the 20
The CCI at 20 is the 'standard' setting.
You want to turn it into a useful tool ?
Here's the recipe -
Strip every other indicator off a chart...everything!
Now put a Cci (20) up.
Next , establish a Buy signal every time the CCI comes back up and over the -100.
But what a about a Sell signal "
Two ways to approach that -
a. Sell overtime the CCI has just peaked out
b. Sell overtime the CCI has peaked out at above the +125 level
Now. I could go on and on about modifying this recipe for different chart interval trading,
however that would go against the modern ADD attention span for most
MB readers, so I won't.
but I will say this-
with what I have just given you, the InvestorVillage Message Boards could disappear off the face of earth tomorrow , and ............