📊 The Origins of EMA & RSI — Who Created Them and Why?
When we trade today, indicators like EMA and RSI feel like essentials. But do you know the story behind them? Let’s dive in 👇
🔹 Exponential Moving Average (EMA)
The concept of moving averages appeared in the early 20th century, used by statisticians and traders to smooth out noisy price data.
The Exponential Moving Average formula was introduced in the 1960s–70s as an improvement over the Simple Moving Average (SMA).
EMA puts more weight on recent prices, making it more responsive to the latest market moves — perfect for traders who need to catch trends early.
🔹 Relative Strength Index (RSI)
Created in 1978 by J. Welles Wilder Jr., a mechanical engineer turned trader.
Wilder introduced RSI in his famous book “New Concepts in Technical Trading Systems”.
RSI measures the speed and magnitude of price changes, showing when a market is overbought (>70) or oversold (<30).
✨ Fun fact: When RSI was first published, there were no TradingView charts or mobile apps — traders calculated it manually or used early computers!
🚀 Today, EMA helps us identify trend direction, while RSI helps us find entry/exit timing. Together, they remain among the most trusted tools in technical analysis, decades after their invention.
Do you personally rely more on EMA crossovers or RSI signals in your strategy? 🤔👇