We must use a third indicator, either volume or MACD ...#BTCVSGOLD #venezuela $BTC
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Do you sometimes find that the indicators don't show you any information?
It's not that your RSI or EMA are broken. If you notice they don't work with certain coins, the reason is purely technical, and here I explain it in simple terms:
Both the Relative Strength Index (RSI) and the Exponential Moving Average (EMA) depend on the number that appears in parentheses, for example: RSI (6) or EMA (20). That number is the key to everything.
That number indicates how many "periods" the indicator is counting. The duration of each period depends on the timeframe you're viewing on your chart:
If you view the chart on a 1-hour basis, an RSI (6) calculates data from the last 6 hours.
If you switch to 15 minutes, that same RSI (6) now calculates only an hour and a half (15 minutes X 6).
This is where the confusion occurs. A period is equivalent to a unit of the timeframe you visualize. That's why, in a recently launched token, the information is often incomplete:
If a token has only been alive for 12 hours and you are viewing it on the 1-hour chart, the EMA (20) will not appear on your screen. The reason is simple: the indicator needs 20 hours of history to plot the line, and the token only has 12. In that case, you could only see indicators of shorter periods, like the EMA (9).
In summary: For an indicator to work, the chart must have at least the same number of candles as the number in parentheses. If the token is very young, give it time for the indicators to have enough data to work with.
It's not that your RSI or EMA are broken. If you notice they don't work with certain coins, the reason is purely technical, and here I explain it in simple terms:
Both the Relative Strength Index (RSI) and the Exponential Moving Average (EMA) depend on the number that appears in parentheses, for example: RSI (6) or EMA (20). That number is the key to everything.
That number indicates how many "periods" the indicator is counting. The duration of each period depends on the timeframe you're viewing on your chart:
If you view the chart on a 1-hour basis, an RSI (6) calculates data from the last 6 hours.
If you switch to 15 minutes, that same RSI (6) now calculates only an hour and a half (15 minutes X 6).
This is where the confusion occurs. A period is equivalent to a unit of the timeframe you visualize. That's why, in a recently launched token, the information is often incomplete:
If a token has only been alive for 12 hours and you are viewing it on the 1-hour chart, the EMA (20) will not appear on your screen. The reason is simple: the indicator needs 20 hours of history to plot the line, and the token only has 12. In that case, you could only see indicators of shorter periods, like the EMA (9).
In summary: For an indicator to work, the chart must have at least the same number of candles as the number in parentheses. If the token is very young, give it time for the indicators to have enough data to work with.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.