The RSI indicator is more suitable for swing trading because it’s more responsive to the price action. This feature makes the RSI indicator much more dynamic than other swing trading indicators that don’t give the same clear picture. In comparison to the moving averages, the RSI indicator is a leading indicator. This means that the RSI readings are not relaying that much on past price action but instead they show you the future. Like with all indicators the key is to appropriate select the right settings for your preferred swing trading indicator. If you don’t get the settings right the indicator will either be too slow or too fast to respond to the price action. When combining multiple indicators together we want to keep the settings the same across the board. In this regard, we use 20 periods as the appropriate setting for the RSI indicator. See chart above.