Compact mode
Relative Strength Index (RSI) vs Simple Moving Average (SMA) vs Average True Range (ATR)
Table of content
General Information Comparison
Indicator Type 📊
The category or classification of the trading indicator based on its primary function and analysis method.Relative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)Asset Class 💰
Specifies the financial instruments for which the indicator is most commonly usedFor all*- StocksIndicators optimized for analyzing and predicting stock price movements in equity markets.
- ForexIndicators optimized for currency pair trading in the foreign exchange market.
Relative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)Known for 💭
The unique selling point or distinguishing feature of the trading indicatorRelative Strength Index (RSI)- Momentum MeasurementRelative Strength Index (RSI) is known for Momentum Measurement.
Simple Moving Average (SMA)- Smooth Price MovementsSimple Moving Average (SMA) is known for Smooth Price Movements.
Average True Range (ATR)- Volatility Without DirectionAverage True Range (ATR) is known for Volatility Without Direction.
Made In 🌍
The country or origin of the trading indicatorRelative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)
Characteristics Comparison
Lagging or Leading 🏁
Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.Relative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)Complexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorFor all*Popularity 🏆
Indicates how widely used and recognized the indicator is in the trading communityRelative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)
Facts Comparison
Interesting Fact 💡
An intriguing or lesser-known fact about the trading indicatorRelative Strength Index (RSI)- Created by J. Welles Wilder
Simple Moving Average (SMA)- Oldest and most basic technical indicator
Average True Range (ATR)- Part of Welles Wilder's indicators
Sarcastic Fact 😉
A humorous or ironic observation about the trading indicatorRelative Strength Index (RSI)- The only thing relative about it is how relatively often it's misused
Simple Moving Average (SMA)- Even your grandma could calculate it
Average True Range (ATR)- It's the drama meter of the market - higher values mean more excitement
Application Comparison
Timeframe 🕑
The time intervals or periods for which the trading indicator is most effective or commonly used.For all*Relative Strength Index (RSI)- 1-HourRelative Strength Index (RSI) is most effective for 1-Hour timeframes. Indicators optimized for analyzing market data on a 1-hour timeframe Click to see all.
- 4-HourRelative Strength Index (RSI) is most effective for 4-Hour timeframes. Indicators designed for analyzing market data on a 4-hour timeframe Click to see all.
Average True Range (ATR)
Technical Details Comparison
Calculation Method 🧮
The mathematical or analytical approach used to compute the trading indicator's values.Relative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)Signal Generation 📊
Describes the methods by which the indicator produces trading signalsRelative Strength Index (RSI)- ThresholdsRelative Strength Index (RSI) generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met Click to see all.
- DivergencesRelative Strength Index (RSI) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals Click to see all.
Simple Moving Average (SMA)Average True Range (ATR)Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*Relative Strength Index (RSI)
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorRelative Strength Index (RSI)Simple Moving Average (SMA)- BeginnersSimple Moving Average (SMA) is designed for Beginners. Simple and easy-to-understand tools for novice traders Click to see all.
- Long-Term InvestorsSimple Moving Average (SMA) is designed for Long-Term Investors. Emphasizes long-term trends and fundamental analysis, suited for buy-and-hold strategies Click to see all.
Average True Range (ATR)Purpose 📈
The primary purpose or application of the trading indicatorRelative Strength Index (RSI)Simple Moving Average (SMA)- Trend IdentificationSimple Moving Average (SMA) is primarily used for Trend Identification. Tools that help traders recognize and confirm established market trends Click to see all.
- Support And ResistanceSimple Moving Average (SMA) is primarily used for Support And Resistance. Indicators that identify key price levels where trends may pause or reverse Click to see all.
Average True Range (ATR)
Evaluation Comparison
Pros 👍
Advantages of using the trading indicatorRelative Strength Index (RSI)- Easy To Interpret
- Effective For Identifying Reversals
Simple Moving Average (SMA)- Easy To UnderstandIndicators with straightforward concepts and interpretations Click to see all.
- Widely UsedPopular indicators trusted by many traders for market analysis Click to see all.
Average True Range (ATR)- Useful For Position Sizing
- Helps Set Stop-Losses
Cons 👎
Disadvantages or limitations of the trading indicatorRelative Strength Index (RSI)- Can Remain In Overbought/Oversold Conditions During Strong Trends
Simple Moving Average (SMA)- Lag In Fast-Moving Markets
- May Miss Sudden Price ChangesIndicates that some indicators might not capture rapid market movements effectively. Click to see all.
Average True Range (ATR)
Performance Metrics Comparison
Reliability Score 💯
A score indicating the overall reliability of the trading indicatorRelative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)Ease of Use Score 💻
A score representing how user-friendly and intuitive the trading indicator isRelative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)Versatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesFor all*Customization Score 🔧
A score representing the degree of customization available for the trading indicatorRelative Strength Index (RSI)- 6.5The customization score for Relative Strength Index (RSI) is 6.5 out of 10.
Simple Moving Average (SMA)- 6The customization score for Simple Moving Average (SMA) is 6 out of 10.
Average True Range (ATR)- 6.5The customization score for Average True Range (ATR) is 6.5 out of 10.
Score ⭐
The overall score of the trading indicator based on various performance metricsRelative Strength Index (RSI)Simple Moving Average (SMA)Average True Range (ATR)
Alternatives to Relative Strength Index (RSI)
Chande Momentum Oscillator (CMO)
Known for Momentum Measurement🔧 is more customizable than Relative Strength Index (RSI)
Rate Of Change (ROC)
Known for Speed Of Price Changes🔀 is more versatile than Relative Strength Index (RSI)
Stochastic Oscillator
Known for Momentum And Trend Reversal🔧 is more customizable than Relative Strength Index (RSI)
Elder-Ray Index
Known for Combining Trend And Momentum🔀 is more versatile than Relative Strength Index (RSI)
🔧 is more customizable than Relative Strength Index (RSI)
Exponential Moving Average (EMA)
Known for Smooth Price Movements💯 is more reliable than Relative Strength Index (RSI)
🔧 is more customizable than Relative Strength Index (RSI)
⭐ is rated higher overall than Relative Strength Index (RSI)
Woodies CCI
Known for Modification Of Traditional CCI🔧 is more customizable than Relative Strength Index (RSI)
Money Flow Index (MFI)
Known for Volume And Price Movements🔧 is more customizable than Relative Strength Index (RSI)