Parameters
Learn how adjusting RSI's parameters changes signal sensitivity and indicator behavior.
Learn how adjusting RSI’s parameters changes signal sensitivity and indicator behavior.
Overview
Section titled “Overview”RSI has one primary parameter: Period (the number of bars used for RMA smoothing). Standard setting (14) was designed for stocks — crypto’s higher volatility often benefits from adjusted values.
RSI Period
What It Controls: Number of bars used for RMA smoothing of gains/losses.
Default: 14 bars
How It Works:
- Lower values (5–10): More responsive, generates extreme readings more frequently
- Standard values (11–16): Balanced responsiveness
- Higher values (17–25): Smoother, fewer extreme readings
What Happens at Extremes
Period = 5 (Very Short)
- RSI changes dramatically with each bar
- Reaches overbought/oversold zones frequently
- Useful for scalping
- Risk: excessive noise
Period = 21 (Very Long)
- RSI changes slowly
- Extreme readings rare but reliable
- Useful for position trading
- Risk: significant lag
Timeframe Recommendations
| Timeframe | Recommended | Notes |
|---|---|---|
| 1-Minute | 7–9 | Very responsive for scalping |
| 5-Minute | 9–11 | Balanced for intraday |
| 1-Hour | 14 | Standard |
| 4-Hour | 14–16 | Balanced for position entries |
| Daily | 14–21 | Standard for position trading |
Signal Line Period
What It Controls: Smoothing period for RSI’s signal line — a moving average of the RSI value itself.
Default: 9 bars
How It Works:
- Lower values (5–7): Signal line stays close to RSI, frequent crossovers
- Standard values (8–11): Balanced crossovers
- Higher values (12–20): Very smooth, rare but high-conviction crossovers
What Happens at Extremes
Threshold
What It Controls: Comparison value for rsi_above_threshold and rsi_below_threshold signals.
Default: 30/70
How It Works:
- Overbought: 70 (conservative), 75–80 (aggressive)
- Oversold: 30 (conservative), 20–25 (aggressive)
- Neutral: 50 (trend bias filter)
What Happens at Extremes