If I want to trade with currencies and to use short term trade with 2 day frame what you recommended. Rsi 14 or rsi 22


Aime
For short-term trading in the foreign exchange market with a 2-day frame, I recommend using RSI-22. Here's why:
- Reducing False Signals: With a longer time frame of 2 days, you can afford to use a slightly less sensitive RSI value. An RSI-22 can help reduce the number of false signals that might occur in a shorter time frame, providing a more reliable view of market trends.
- Volume and Liquidity: Forex markets still offer high liquidity even in the shorter time frames. An RSI-22 can help you identify trading opportunities without being too sensitive to short-term market noise.
- Economic Indicators: Economic indicators can have a lasting impact on currency pairs, and an RSI-22 can help you gauge the market's reaction to these events over a slightly longer period. This can be particularly useful for traders who focus on fundamental analysis alongside technical analysis.
- Market Noise Reduction: A 2-day frame can still capture significant price movements while reducing the impact of short-term market noise. An RSI-22 can help smooth out these fluctuations, providing a clearer picture of the market's underlying trend.
While an RSI-14 might be too sensitive for a 2-day frame, an RSI-22 can help you avoid false signals while still capturing meaningful price movements. This can be particularly useful for traders who prefer a middle ground between short-term trades and longer-term trends.
As before, it's important to use the RSI in conjunction with other indicators and market analysis to confirm signals and improve the accuracy of your trades. Additionally, consider the impact of economic indicators and news events, which can amplify market volatility and affect the effectiveness of your RSI strategy.
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