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What Is the Effect of Changing the Lookback Period on the RSI Calculation?

The standard lookback period for RSI is 14 periods. Reducing the period (e.g. to 7) makes the RSI more sensitive to price changes, leading to more signals, but also more false signals.

Increasing the period (e.g. to 21) makes the RSI smoother and less sensitive, leading to fewer but potentially more reliable signals.

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