Introduction
For example, in a spot gold market superimposed in the European and American markets one night, the price began to rise from 1240 yuan at 20:30 in the evening to 1255 US dollars at 21:15. A total increase of 15 dollars. The optimized RSI indicator began to cross the 30 indicator position when the price rose to 1244 US dollars, indicating that the price of gold will rise. Then the sensitivity of this optimized RSI indicator is: 4/15=26.67%.
Obviously the higher the sensitivity of the technical indicators, the smaller the percentage value, the better the guiding significance and profitability of the technical indicators!
Analysis
The sensitivity of technical indicators is closely related to investment products
Each indicator and investment product has its own characteristics and operating rules. There is no universal technical index. Some focus on the analysis and grasp of long-term trends; some are biased towards the processing and prediction of short-term fluctuations. The sensitivity of the same indicator to different investment products varies greatly. Gabriel's investment research team analyzed and tested different spot gold and foreign exchange investment products through trading robots and analytical robots, and found that the sensitivity of the same indicator to different investment products can vary by dozens of percentage points.
The sensitivity of technical indicators is closely related to their own parameter settings.
Most technical indicators have many parameters that can be set. For example: the minimum time period for analysis is 1 minute, 5 minutes or 1 hour , 1 day? For RSI, MACD and other technical indicators, what is the number of sampling points at one time? The same technical index parameter settings are different, and the analysis results are very different, which has a serious impact on the sensitivity of the final technical index. According to the actual test results: the shorter the time period and the smaller the number of sampling points, the higher the sensitivity of the indicator. The volatility of the indicator is also more severe. However, this violent oscillation will greatly reduce the accuracy of technical indicators and cause a lot of false alarms.
Therefore, the sensitivity and accuracy of technical indicators are often not available at the same time. Investment researchers need to analyze a large amount of data to find the best balance.