The Problem with Technical Analysis

This is a discussion on The Problem with Technical Analysis within the Technical Analysis forums, part of the Methods category; Originally Posted by Kaeso RSI is objectively this: 100 - 100 / (1 + RS) RSI values range from 0 ...

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Old Sep 15, 2017, 12:00am   #73
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Originally Posted by Kaeso View Post
RSI is objectively this: 100 - 100 / (1 + RS)



RSI values range from 0 to 100



i think you are taking the word momentum too literally
Momentum in Physics is a fact proven a million times over - in other words it is an objective standard of measure. Rsi is invented by wilder. I personally prefer to follow the objective laws of physics rather that some random idea.

But nothing to stop you using both if that's your cup of tea.

Last edited by wisefoolx; Sep 15, 2017 at 7:00am.
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Old Sep 15, 2017, 1:29am   #74
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Momentum in Physics is a fact proven a million times over. Rsi is invented by wilder. I personally prefer to follow the laws of physics rather that some random idea.
Physics is irrelevant for trading. Trading is about economics. It's is about what your counterparty chooses to do with the £5-£30/point money that you hand over to them. Invariably it becomes their money for beginners who don't understand what the game is about.
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Old Sep 15, 2017, 7:41am   #75
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Originally Posted by brewski1984 View Post
In my opinion, TA doesn't work because numbers are meaningless.
And I'm not necessarily disagreeing with that.
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Old Sep 15, 2017, 7:42am   #76
 
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Originally Posted by wisefoolx View Post
Momentum in Physics is a fact proven a million times over - in other words it is an objective standard of measure. Rsi is invented by wilder. I personally prefer to follow the objective laws of physics rather that some random idea.

But nothing to stop you using both if that's your cup of tea.
Momentum in physics is about the movement of physical bodies. Why should that have any relevance to something non-physical like the price of shares other than as a descriptive analogy?
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Old Sep 15, 2017, 7:59am   #77
 
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Originally Posted by wisefoolx View Post
Momentum in Physics is a fact proven a million times over - in other words it is an objective standard of measure. Rsi is invented by wilder. I personally prefer to follow the objective laws of physics rather that some random idea. But nothing to stop you using both if that's your cup of tea.
i currently don't look at RSI myself but if it interests me in future ill look at it again

ok so you use a physics equation of motion as an analogy to market movement, whatever floats your boat. if it works for you then that's great.
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Old Sep 15, 2017, 8:18am   #78
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Originally Posted by Kaeso View Post
i currently don't look at RSI myself but if it interests me in future ill look at it again

ok so you use a physics equation of motion as an analogy to market movement, whatever floats your boat. if it works for you then that's great.
Yes exactly , something that the trollers don't seem to want to get, as I play the copy and paste game with them. No one is putting a gun to anyone's head to use this or that indicator. We can do what we want.

But I prefer objective measures of standard not made up ones, at least as an addition to standard TA.
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Old Sep 15, 2017, 8:37am   #79
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Momentum in physics is about the movement of physical bodies. Why should that have any relevance to something non-physical like the price of shares other than as a descriptive analogy?
Welles Wilder seems to tell us the RSI is a measure of momentum, He is not saying it is anything else, but the only proven objective standard of measure is momentum in physics, not what he made up.

Though no one is forcing you not to believe him, however I would argue RSI is highly subjective. But whatever floats your boat. if it works for you then that's great

Also are you so sure movement of price is non physical ? Is it not a representation of the physical and physical as well, as least previously.
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Old Sep 15, 2017, 10:45am   #80
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Also are you so sure movement of price is non physical ?
For the clueless, price movement is economical not physical. Lager your bet, the faster it move against you. This is why I like to see you put down £30/point. This will teach you some real anti-gravity physics.
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