I have a small question and the reply will satisfy the curious TA in me.....
Its about the RSI....
Q. Since the RSI calculations are based on the closing price, therefore isn't it appropriate while looking at divergences, we should compare the closing price (line chart) rather than the Hi/lo's ???
3 comments:
Hello Mr.Michael Kahn
I have been following your blog since long...
I have a small question and the reply will satisfy the curious TA in me.....
Its about the RSI....
Q. Since the RSI calculations are based on the closing price, therefore isn't it appropriate while looking at divergences, we should compare the closing price (line chart) rather than the Hi/lo's ???
Thanks in Advance
Regards
Manoj Bhagra
You have discovered what most chartists do not understand. You have to match the indicator to the price series.
Hello Mr.Michael Kahn
Thanks for the reply...
It did clear out a few things..as RSI is a integral part of my trading and so are the divergences...
Thanks once again...
Cheers!!!
Manoj Bhagra
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