do any of you out there, follow the RSI (relative strength index) in a daily, weekly, even a monthly basis, if so, does it work for you, or even do you find it accurate, and why.:devil:
In my stocks in works well, I just started collecting silver though so I'm not sure about it in PMs. I started buying here because the trend is your friend and $22 is the first major support I see and if it breaks $18 looks to be the next big support. All IMO but I see a good buying opportunity here (at least for me)
It's resistance to $20 is a bit confusing, but that never slowed me down, looking at volume sold VS. volume bought, I really do see it rising, before 2014, then just a matter of fact.
Isn't it basically supposed to work similar to the bell curve, with 50 as the midpoint? So, a score of 41/45 wouldn't really be a buying indicator. Even if we assume that the true range is 20-80, that would still mean you'd need a shift of 20 points either way to be any sort of indication of something being a buy signal or sell signal. Everything within 1/2 sigma from the median (total 1 sigma spread) would be considered "normal conditions," which would mean anything within 33%-67% would be considered non-important. Even at 1 sigma (15.9%/84.1%), you'd see a tendency, not a strong indicator.
Gold at 42 silver at 39, I agree, look at it also as over 50, over bought, price is to high, under 50, over sold, price is to low.
If that's really how you use/explain RSI, please stop using/discussing it. Using "over/under 50" is a horrible misunderstanding of how it works. Any event within one sigma is basically "normal."
that is how most use it, I know, I know there is so much more than the cliff note's version, but sorry NK it's worked for me..
That's more a result of short-term luck/variance, coupled with a touch of self-fulfilling prophecy. Essentially, you're buying when it's below-50, then holding until you decide to sell, when prices are above what you paid. That works as long as you have no time-horizon constraints. It's really bad to use a faulty method, then tell others to use it because "it's worked for me." But, do what you will, this isn't an investment forum, so I won't get into work stuff.
