The Commodity Selection Index is an indicator created by Welles Wilder. The name betrays the purpose of the tool: select, from time to time, financial assets capable of being exploited in short-term.
The indicator select those stocks that have a strong directional trend characterized by high volatility. Often peaks indicator lights indicate points of trend reversal, however, the CSI is an indicator of stock selection on which to focus the analysis and not as a tool to generate signals concrete operational. These will be generated from the classic graphics with the help of additional indicators, such as the momentum. In some cases, known as the indicator peaks coincide with the minimum prices at which they are achieved substantial technical rebounds. Similarly, although in a less obvious and less reliable, the minimum peaks of the indicator have marked the highest in the prices of financial
Finally a further and operational approach advisable to supplement the indicator its moving average with the purpose of generating the signals of purchase and sale through the intersection.
