Charting The Market by David Penn
THE RELATIVE STRENGTH INDEX
Writing about his relative strength index (RSI) in 1978, J.
Welles Wilder noted five different ways that the indicator
could be helpful to investors and traders. These include
identifying tops and bottoms; confirming chart patterns;
looking for “failure swings”; gauging support and resistance;
and spotting divergences between rising or falling indicator
action versus price action.