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Q: Which is a better indicator to determine oversold or overbought conditions - RSI or CCI?
A: This largely depends on your trading style and preferences. CCI and RSI are both momentum oscillators that show similar information (i.e. momentum). Used with their standard settings, CCI(20) will be more sensitive than RSI(14). On the QQQQ chart, notice that CCI(20) became overbought and oversold numerous times over the last five months. In contrast, RSI(14) only became overbought once in early May. Despite such a glaring difference, RSI can be tweaked to look more like CCI(20). The bottom indicator window shows RSI(6), which is 6 period RSI. This version looks very similar to CCI(20).
