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RSI: Relative Strength Index demystified

What is RSI? The relative strength index (RSI) is a momentum indicator developed by noted technical analyst Welles Wilder, that compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security. It is primarily used to attempt to identify overbought or oversold conditions in the trading of an asset.

RSI attempts to capture the following:
1. Recent gains and losses over a period of time,
2. Measure of speed and change of price movements, and
3. Overbought or oversold conditions in trading of a stock or Index.
Calculating RSI 1. Find out average gain during specified time frame. 2. Find out average loss during specified time frame.
Then calculate the RS value for each closing day. RS = Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame.
The relative strength index is calculated using the following formula:
RSI = 100 - 100 / (1 + RS)
The RSI pr…
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Should you tie up your hard earned money in Real Estate???

Your House is not just Property?One should buy a house for no purpose other than to live in it. Property or Real estate makes for a poor financial investment because the ticket size is huge, and liquidity is poor. This combination is highly risky for placing a bet using a huge chunk of your money. In addition the entire investment has to be sold at one go. You cannot dream of deleveraging your investment by hiving off a part of your investment at a later date. Though the popular wisdom seems to indicate that you can't go wrong with property, the fact is that you may or may not be able to sell when you want to--in a slump, entire markets disappear for long periods. God Forbid, if you need money in a hurry then you are trapped in a buyers' market. Add to this the myriad hidden charges like Annual maintenance, Repairs, Taxes and Fees, Registration charges, Stamp Duty, Brokerage, and you begin to wonder about the gains.
When you acquire your first house for staying in it for a fai…

Review: Elon Musk: Tesla, Spacex, and the Quest for a Fantastic Future

Elon Musk: Tesla, Spacex, and the Quest for a Fantastic Future by Ashlee Vance
My rating: 4 of 5 stars

Ashlee Vance has a good narrative style that keeps your interest alive. Not that there was any need in the case of Elon's story. Elon is a dreamer, and a true inspiration to anyone who is passionate about changing the world, but has been unable to muster up the courage to take the first step.

I thoroughly enjoyed the entire book. The in-depth look into the inner workings of Tesla, and SpaceX are a revelation into the new world of world changing tech. Elon's courage and success in taking on an industry as entrenched as automobiles is really an eye opener, and tells you nothing is impossible. Hope to see many more of Elon's ilk take over ours as well as other worlds.

View all my reviews

Closed timelike Curves: Solving the "Grandfather Paradox" and foiling Quantum Cryptography.

•Entering a closed timelike curve tomorrow means you could end up at today. On June 28, 2009, the world-famous physicist Stephen Hawking threw a party at the University of Cambridge, complete with balloons, hors d'oeuvres and iced champagne. Everyone was invited but no one showed up. Hawking had expected as much, because he only sent out invitations after his party had concluded. It was, he said, "a welcome reception for future time travelers," a tongue-in-cheek experiment to reinforce his 1992 conjecture that travel into the past is effectively impossible. But Hawking may be on the wrong side of history. Recent experiments offer tentative support for time travel's feasibility—at least from a mathematical perspective. The study cuts to the core of our understanding of the universe, and the resolution of the possibility of time travel, far from being a topic worthy only of science fiction, would have profound implications for fundamental physics as well as for practi…

Benford's Law: How Tax Frauds are caught...

If you list all the countries in the world and their populations, 27% of the numbers will start with the digit 1. Only 3% of them will start with the digit 9. Something very similar holds if you look at the heights of the 60 tallest structures in the world — whether you measure in meters or in feet. 

This phenomenon — called Benford's Law —helps auditors detect fraud in things like taxes and elections, but it also connects up in striking ways to modern physics and mathematics (e.g., power laws in statistical distributions, as well as ergodic theory).

Benford's Law often strikes people as unintuitive because it seems that every digit should have an equal opportunity to start country populations or heights of skyscrapers, like this:

(The delightful figures are from http://www.thecleverest.com/benf...)

This egalitarian intuition about leading digits turns out to be misleading. The situation where every digit is equally likely to start numbers is actually the anomalous one. 

==

The fact…

Innovation Cycle: Divining reality from the hype

OVER the past few decades it has become clear that innovation—more than inputs of capital and labour—is what drives a modern economy. In the developed world, the application of technological know-how and scientific discoveries by companies, institutions and government establishments accounts for over half of all economic growth. Because of its seminal influence on wealth-creation in general and employment in particular, the manner in which innovation functions—especially, the way it comes and goes in Darwinian bursts of activity—has emerged as a vital branch of scholarship. What researchers have learned is that waves of industrial activity, first identified by the Russian economist Nikolai Kondratieff in 1925, have a character all of their own. Typically, a long upswing in a cycle starts when a new set of technologies begins to emerge—eg, steam, rail and steel in the mid-19th century; electricity, chemicals and the internal-combustion engine in the early 20th century. This upsurge in i…

A thousand robots assemble into shapes

The madmen at Harvard have finally done it: they’ve simulated real life swarms with tiny robots, thereby bringing the coming robot apocalypse that much closer.

http://www.youtube.com/watch?v=G1t4M2XnIhI
Or maybe they just created some really cool proof-of-concept robotic self-assembly systems. Either way, what you’re seeing is a set of a thousand “kilobots” that can self-assembled into shapes and patterns. The first few bots create a seed and then the other bots fall into line, positioning themselves perfectly among their peers.
The process they use is actually quite amazing. The seed bots gather together and send out little blasts of IR light. The dimmer the light the further away, so the other robots begin moving towards the seed. Finally, once they get enough robots in one place, the robots communicate with each other to position themselves properly. These robots could also be charged via IR or an internet power network that activates when the robots chain up.

The robots can even tell …

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