Compact mode

Relative Strength Index (RSI) vs Moving Average Envelope vs Average True Range (ATR)

Table of content

General Information Comparison
Characteristics Comparison
Facts Comparison

Application Comparison
Technical Details Comparison
Usage Comparison
Evaluation Comparison
Performance Metrics Comparison

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)

Momentum

Relative Strength Index (RSI) is a Momentum type indicator. Measures rate of price change, ideal for identifying strong trends Click to see all.

Moving Average Envelope

Trend

Moving Average Envelope is a Trend type indicator. Indicators that help identify and confirm market trends

Average True Range (ATR)

Volatility

Average True Range (ATR) is a Volatility type indicator. Indicators that measure market volatility and price fluctuations Click to see all.
Asset Class 💰

Specifies the financial instruments for which the indicator is most commonly used

For all*

Stocks

Indicators optimized for analyzing and predicting stock price movements in equity markets.

Forex

Indicators optimized for currency pair trading in the foreign exchange market.

Commodities

Trading indicators optimized for commodity markets like oil, gold, and agricultural products.
Known for 💭

The unique selling point or distinguishing feature of the trading indicator

Relative Strength Index (RSI)

Momentum Measurement

Relative Strength Index (RSI) is known for Momentum Measurement.

Moving Average Envelope

Price Range Visualization

Moving Average Envelope is known for Price Range Visualization.

Average True Range (ATR)

Volatility Without Direction

Average True Range (ATR) is known for Volatility Without Direction.
Made In 🌍

The country or origin of the trading indicator

Relative Strength Index (RSI)

1978

Relative Strength Index (RSI) was developed in 1978. Trading indicators specifically developed in 1978

Moving Average Envelope

United States

Moving Average Envelope was developed in United States. Indicators developed in the USA, reflecting American trading principles

Average True Range (ATR)

1978

Average True Range (ATR) was developed in 1978. Trading indicators specifically developed in 1978

Characteristics Comparison

Lagging or Leading 🏁

Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.

Relative Strength Index (RSI)

Leading

Relative Strength Index (RSI) is a Leading indicator. Indicators that predict future price movements Click to see all.

Moving Average Envelope

Lagging

Moving Average Envelope is a Lagging indicator. Indicators that confirm trends after they have started

Average True Range (ATR)

Lagging

Average True Range (ATR) is a Lagging indicator. Indicators that confirm trends after they have started
Complexity Level 🧑

Indicates the level of expertise required to effectively use the indicator

For all*

Beginner

Simple and easy-to-understand indicators suitable for novice traders.
Popularity 🏆

Indicates how widely used and recognized the indicator is in the trading community

Relative Strength Index (RSI)

High

The popularity of Relative Strength Index (RSI) among traders is considered High. Widely used and trusted indicators in the trading community

Moving Average Envelope

Medium

The popularity of Moving Average Envelope among traders is considered Medium. Indicators with balanced adoption and potential effectiveness

Average True Range (ATR)

Medium

The popularity of Average True Range (ATR) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness

Facts Comparison

Interesting Fact 💡

An intriguing or lesser-known fact about the trading indicator

Relative Strength Index (RSI)

Created by J. Welles Wilder

Moving Average Envelope

Envelopes typically use 2% above and below the moving average

Average True Range (ATR)

Part of Welles Wilder's indicators
Sarcastic Fact 😉

A humorous or ironic observation about the trading indicator

Relative Strength Index (RSI)

The only thing relative about it is how relatively often it's misused

Moving Average Envelope

Often mistaken for Bollinger Bands by novice traders

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*

Daily

Indicators optimized for daily chart analysis, suitable for swing and position traders.

Relative Strength Index (RSI)

1-Hour

Relative Strength Index (RSI) is most effective for 1-Hour timeframes. Indicators optimized for analyzing market data on a 1-hour timeframe

4-Hour

Relative Strength Index (RSI) is most effective for 4-Hour timeframes. Indicators designed for analyzing market data on a 4-hour timeframe

Moving Average Envelope

Weekly

Moving Average Envelope is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.

Average True Range (ATR)

Weekly

Average True Range (ATR) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.

Technical Details Comparison

Calculation Method 🧮

The mathematical or analytical approach used to compute the trading indicator's values.

Relative Strength Index (RSI)

Oscillators

Relative Strength Index (RSI) uses the Oscillators calculation method. Indicators that oscillate between fixed values to show overbought or oversold conditions. Click to see all.

Moving Average Envelope

Moving Averages

Moving Average Envelope uses the Moving Averages calculation method. Indicators combining different moving averages for comprehensive trend analysis. Click to see all.

Average True Range (ATR)

Moving Averages

Average True Range (ATR) uses the Moving Averages calculation method. Indicators combining different moving averages for comprehensive trend analysis. Click to see all.
Signal Generation 📊

Describes the methods by which the indicator produces trading signals

Relative Strength Index (RSI)

Thresholds

Relative Strength Index (RSI) generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met

Divergences

Relative Strength Index (RSI) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals

Moving Average Envelope

Breakouts

Moving Average Envelope generates trading signals through Breakouts. Indicators that identify when price breaks key levels, signaling potential trends

Average True Range (ATR)

Thresholds

Average True Range (ATR) generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met
Customization Options 🔧

Lists the parameters that can be adjusted to fine-tune the indicator

For all*

Period

Enables customization of analysis timeframe

Relative Strength Index (RSI)

Thresholds

Relative Strength Index (RSI) offers customization options for Thresholds. Customizable thresholds for signal generation Click to see all.

Moving Average Envelope

Percentage

Moving Average Envelope offers customization options for Percentage. Enables customization of percentage-based calculations or thresholds Click to see all.

Usage Comparison

For whom 👥

The target audience or user group for the trading indicator

Relative Strength Index (RSI)

All Traders

Relative Strength Index (RSI) is designed for All Traders. Versatile tools suitable for traders of all experience levels and styles Click to see all.

Moving Average Envelope

Long-Term Investors

Moving Average Envelope 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)

Risk Managers

Average True Range (ATR) is designed for Risk Managers. Focuses on volatility and potential market risks, crucial for risk assessment Click to see all.
Purpose 📈

The primary purpose or application of the trading indicator

Relative Strength Index (RSI)

Overbought/Oversold Conditions

Relative Strength Index (RSI) is primarily used for Overbought/Oversold Conditions. Indicators that identify extreme market conditions Click to see all.

Moving Average Envelope

Trend Identification

Moving Average Envelope is primarily used for Trend Identification. Tools that help traders recognize and confirm established market trends Click to see all.

Average True Range (ATR)

Volatility Measurement

Average True Range (ATR) is primarily used for Volatility Measurement. Tools that quantify market price fluctuations and instability Click to see all.

Evaluation Comparison

Pros 👍

Advantages of using the trading indicator

Relative Strength Index (RSI)

Easy To Interpret

Effective For Identifying Reversals

Moving Average Envelope

Simple To Understand And Implement

Helps Identify Overbought/Oversold Conditions

Signals when an asset may be overvalued or undervalued, helping traders spot potential reversals

Average True Range (ATR)

Useful For Position Sizing

Helps Set Stop-Losses
Cons 👎

Disadvantages or limitations of the trading indicator

Relative Strength Index (RSI)

Can Remain In Overbought/Oversold Conditions During Strong Trends

Moving Average Envelope

Can Be Late In Signaling Trend Reversals

Indicators that excel in early trend reversal detection, minimizing delays in signaling changes Click to see all.

Effectiveness Varies In Different Market Conditions

Average True Range (ATR)

Doesn't Indicate Price Direction

Indicators that don't show price movement direction, limiting their usefulness in certain scenarios. Click to see all.