Dear Traders, There is Magic in RSI: RSI Tells the Secrets, Are You Listening?

by Sudhir Dixit

To me, RSI is a fascinating and dynamic indicator. Others may consider it a momentum oscillator only, which works more effectively in a range-bound market, but trust me, it can give you significant signals even in trending markets. If you don't believe me, at least believe Andrew Cardwell, who has said, 'I haven't found anything in over thirty years of work that can hold a candle to what RSI can do.' Most of the other indicators like moving averages are lagging indicators, as they lack predictive power.On the other hand, RSI is a leading indicator which can give significant clues about future prices, if we have the ability to decode them. I call RSI magical, because it can predict prices, because it can tell us where to get in and where to get out. In a nutshell, these are some of the most important things RSI can tell •RSI can tell us whether the price is likely to go up or down (momentum). •RSI can warn us through divergences, when a trend is beginning to change (slowdown of momentum).•RSI can give us trend continuation signals through positive and negative reversals (Andrew Cardwell's brainchildren).•RSI can even help us set price objectives for negative and positive reversals (again Andrew Cardwell's discovery)•RSI can pretty accurately tell in advance whether a breakout is going to happen in a channel or a pattern (because it is a leading indicator)•RSI can tellus when to buy and when to sell (this was the whole purpose for which Wilder invented it)•And if you take the trouble of using a screener on RSI signals, RSI can even give you a list of good buying options too.Not a bad idea! If an indicator can tell us all this, don't you think we should know more about it!

221 pages, Paperback

Published May 4, 2021

Reviews

[Aditya Kumar · Rating 2 out of 5]

At the start of the book writer claims this isn't what's already on internet (RSI). Of course, the book teaches us how RSI is calculated, effects of minute changes like smoothing length on RSI. But there isn't information about how to use this for Day-to-Day trading which i assumed it. At the end of the book how to couple the RSI with other indicators, and to use it.

[Rohith]

A good book on Rsi

I appreciate the effort of the writer. Could have been littlr better and detailed. Overall it gave me a new perspective on RSI. That i have neglected for so long.

[Rabin Rai · Rating 4 out of 5]

My understanding of how to use RSI is finally better.
Have not used RSI much before because I did not know how to use it.
It looks like it works as I compared the advice given with NEPSE.

Andrew Cardwell is also introduced who took RSI to a whole new level. The creator of RSI is another guy who introduced RSI regular divergences for trend reversals. Andrew's main contribution is positive and negative reversals (hidden divergences) which works as trend continuation signals. This is more useful as we can follow the trend using this method, which is a lot safer than trading reversals as we are going against the primary trend.

The profit target formula introduced in the book is also useful when using positive and negative reversals. Seems to work in NEPSE too.

Failure swing is also a good concept. This can be used to confirm the trend reversal rather than immediately jumping into the trade.

[Shanmuga Vel · Rating 5 out of 5]

Rsi.. A deep and good book

Well to know this book make me, enhancing the RSI knowledge for a trader and even the investor.. Also it helps beginners too.. Awesome simple book about RSI...

[Paul A. Toth · Rating 5 out of 5]

Great value/information

Since I am a newbie at stock trading this book helped me set this area of technical indicators in my trading knowledge foundation. It is written so I could understand it and try things out in my paper trading!

[Saurabh Singh · Rating 5 out of 5]

Book you must read as a beginner!

Nice composition, it is worth reading for the detailed aspects of the rsi. The analysis is done nicely with examples and explanation that could be easily understood by a layman.

[Nitin Sharma · Rating 5 out of 5]

Superb...

Excellent book for newbies to understand the features.. Loved it.. Wish more such books are written for Indian market. God bless

[Rohit Biskite · Rating 5 out of 5]

Most useful Book

I learned a lot about RSI.
Power of RSI.
Very very useful book for trader
You can trade only basis on RSI.

[Amit Gandhi · Rating 5 out of 5]

Excellent read!

[Himanshu Redkar · Rating 5 out of 5]

Comprehensive RSI Study

This book is a very good study of RSI indicator. Never came across a book which goes in to intricate details of any one indicator. Highly recommended

[Nikhil · Rating 5 out of 5]

Nicely covered

This book covers the topic very well. Healthy read for beginners.
The tables are really good.
The content is for the Indian market.

[Upasna · Rating 5 out of 5]

Good read

Lots of info. Explains RSI in detail. Easy to understand. Must read for beginners. Lot of hidden secrets of RSI unveiled.

[Girish Kolari · Rating 3 out of 5]

Good book

Good read for people who are already aware of trading system. Book could be improved for new to trading with details explanations.

[Vishal · Rating 5 out of 5]

Very Good

This book is nice and informative, language used in book is very simple that tells us lots of things about RSI.

[Ayan Das · Rating 5 out of 5]

Excellent book

This is the best book in RSI. The concept of this book is very unique and excellent quality. If you use rsi in your trading chart then must read this book.

[Anurag Banka · Rating 5 out of 5]

Rsi in detail

Written in simple language. Contains all that you need to know about Rsi for trading. Includes many finer nuances too.

[DANIEL OSARO · Rating 5 out of 5]

RSI for simple minded.

RSI made clearer.
Simple indicator for the simple minded.
This is well explained and presented.
I will recommend for simple technical analyst.

[Thomas · Rating 1 out of 5]

Waste of time.

[RAMAKRISHNAN · Rating 5 out of 5]

VARY GOOD BOOK ABOUT RSI

The author has discussed all about RSI THOROUGHLY and has suggested many ideas for traders for trading using RSI along with other indicators

[Manpreet Marjara · Rating 5 out of 5]

Great Insight

Helped me understand RSI usage deeply and it fits very well in my chart patterns strategy very well. Thanks a lot 🙏

[Yogi Ramachandran · Rating 4 out of 5]

RSI has been explained well. Very few books talk about RSI in detail. This is one of them. Also, it explains the concept of RSI in context of the Indian stock markets.

Trading strategies at the end of the book are a bonus.