A Hull Moving Average Variant of the RSI

Summary

This document describes a modified relative strength index that replaces the usual Wilder-style smoothing average with Alan Hull’s moving average. It also applies price filtering before calculating the indicator, making it a broader alteration of RSI than simply changing the smoothing step. The author characterizes it as using Hull averaging wherever an average can be substituted in the indicator.

A divisor parameter controls the Hull average’s speed. A value of 2.0 reproduces the standard Hull average; lower values slow it, while higher values make it faster and can create overshooting when RSI changes sharply. The suggested approach is to experiment with the parameter to find a useful balance. The document offers a qualitative rationale and tuning advice, but provides no backtest, performance measurements, or defined trading rules. It therefore presents an indicator variation to investigate, not evidence that it produces profitable signals.

Key ideas

• The variant replaces Wilder-style smoothing in RSI with Alan Hull’s moving average.
• It also filters price before calculating RSI, changing more than the smoothing method alone.
• A divisor of 2.0 matches the standard Hull average, while other values alter its speed.
• Faster settings can overshoot during abrupt changes in RSI direction.
• The source recommends parameter experimentation but supplies no performance study or trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.