Read Welles Wilder First
Understanding WHY is very important
A buddy texted me that he is enjoying using this very famous technical indicator RSI but “If you read academic papers on RSI they’ll say it’s BS”
I am 100% confident that he is using it as the definition is well known to be
Definition of an indicator:
a thing, especially a trend or fact, that indicates the state or level of something
Nowhere does it tell you the future.
I am certainly sure that the academics are saying its statistically impossible for it to be valid. Whatever. THey are answering the wrong question.
And most likely didn’t read it fully or approach the original book with an open mind.
Welles Wilder the creator of RSI and many famous indicators is a very colorful figure and all of his work can easily be downloaded by pdf if you google search him.
As a result of his passing, and most likely lapse in his copyright, all platforms have his indicators by default.
Yet dollars to donuts no one read his book and why he created them in the first place.
You have to know where you have been to know where you are going.
Granted most don’t read Euclid or Einstein to grasp math and physics, but not everyone typically puts in the time and money in investing neither.
Buy the book. Flip through it.
For whatever reason it’s more magical to have a real copy.
Yup $75
That is why no one buys it.
Why don’t you want to pay?
Friction. The more you pay the more you can consume
So don’t be fat. Be selective and appreciate it.
Money slows things down.
Like paying for a rock band’s CD and being forced to listen to mostly blah music.
A different era I know.
Here is the table of contents
Every post on social media, every blogger, newsletter writer, pundit basically covers just this one page he has here:
RSI is a great tool, like I presented the past few days, to narrate/indicate what’s going on.
RSI should be used for big picture items like the Currencies, Commodities, Indexes, and Big name fellas.
Of course, experiment and let me know.
The YEN is in the news and I like Japanese stocks so I think this is important to observe
