A Rainbow Moving Average RSI with an Inverse Fisher Transform
Summary
This indicator combines a Rainbow Moving Average with an RSI calculation, then smooths and transforms the result. Its configurable inputs are the Rainbow Moving Average period, RSI period, smoothing period, and overbought and oversold levels. The document describes the indicator’s calculation pipeline rather than a complete trading strategy or rules for entering and exiting positions.
The RSI is calculated on the Rainbow Moving Average and rescaled around zero. Two successive exponential moving averages produce a zero-lag-smoothed value, which is passed through a hyperbolic tangent style transform and rescaled to a 0–100 range. The description says the Rainbow Moving Average calculation is included, so a separate indicator installation is unnecessary. It provides no performance results, tested markets, signal thresholds, or guidance on risk controls; usefulness as a trading signal therefore remains unsubstantiated here.
Key ideas
- The indicator calculates RSI using a Rainbow Moving Average as its input series.
- It applies two exponential smoothing stages to create a zero-lag-style RSI value.
- An inverse Fisher style transform maps the smoothed value to a bounded oscillator scale.
- Users can adjust calculation periods and overbought and oversold levels.
- The description supplies no backtest or evidence that the indicator predicts returns.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.