best rsi period is 14?
Explanation
The statement "best rsi period is 14" refers to the length of the time period commonly used to calculate the Relative Strength Index (RSI), a popular momentum oscillator in technical analysis. J. Welles Wilder Jr., the creator of the RSI, indeed recommended using a 14-day period when he introduced the RSI in his book, 'New Concepts in Technical Trading Systems'. This recommendation has led to 14 becoming a widely accepted default period among traders. While traders can customize the RSI settings according to their strategies, the 14-day period is often recommended as it balances sensitivity and reliability for most markets. Therefore, while it can be subjective to claim it as the 'best', it is undeniably one of the most popular and established periods in trading practice. Hence, the claim can be rated as 'Mostly True'.
Key Points
- The 14-day period for RSI is widely accepted and recommended by its creator, J. Welles Wilder Jr.
- It strikes a balance between sensitivity and reliability in market movements.
- While it may not be universally the 'best,' it is the most common default used by traders.
