The Russell 2000 Small Cap index just broke its more aggressive uptrend line after having pulled very far away from its 200-day moving average.
Hi Sean, can you explain the significance of using 6 on the RSI as opposed to 14? Thanks!
Yep, it just responds faster and generates more signals. That's all. The 14 period RSI isn't sensitive enough, in my opinion and doesn't give nearly enough signals.
See how the 6-period RSI gave a number of signals whereas the 14-period never really got to a full RSI buy signal?
Sean Hyman said: See how the 6-period RSI gave a number of signals whereas the 14-period never really got to a full RSI buy signal? https://s3-us-west-2.amazonaws.com/maven-user-photos/seanhyman/technical-analysis/IOSU6hIfr0e_ddd3b0bprg/wSkVqHy6TEyUqILRSrfeVA
Wow that is a big difference! I'm gonna start using that one, thanks Sean!