RSI Alert Indicator

Correlative indicators are indicators which are based on practically same or very similar calculations to derive their trading signals. For example: Using the Commodity Channel Index to confirm signals from the Relative Strength Index. These two indicators give almost the same signals – so confirming one indicator with the other is ineffective, useless – and in fact dangerous.

This "confirmation" can cause the illusion of a high-quality signal that has been tested and confirmed. Trader may enter a larger-than-usual trade just to follow a mediocre signal. Examples for correlative indicators are the following: All kinds of moving averages. Despite difference in their calculation, their behavior is very similar.

Ichimoku is also a trend-following indicator, despite its erratic visual appearance and complexity. To improve the quality of signal, try to combine signals from different types of indicators – confirm Oscillators with Moving Averages. Confirm Range indicators like the Stochastic with RSI or CCI which are based on Momentum. This can help traders to improve their performance for real and increase win rate and confidence in trades.