What is signal threshold?Signal Threshold
The line an indicator must cross to count as a signal, such as RSI's 70/30; the more extreme the threshold, the fewer the signals.
Learn “signal threshold” in an animated lesson
- Oscillators & MomentumSettings and Thresholds: Trading Off Sensitivity
Period 7 or 21? Thresholds of 70/30 or 80/20? Sweep the settings over the same stretch of market and see how the number and quality of signals trade off.
- Oscillators & MomentumRSI in Trends: The Range Shifts
In uptrends RSI tends to swing between 40 and 80, in downtrends between 20 and 60. Identify the trend first, then decide where your overbought and oversold lines go.
Related terms
See how “signal threshold” works for yourself with an animation you can drag and play.
Go to “Settings and Thresholds: Trading Off Sensitivity”