A Smoothed RSI Oscillator Built from Double EMA Differences
Summary
The document describes a configurable oscillator intended to show cyclical market changes. Its construction begins with two exponential moving averages of an applied price, transforms each using a further exponential average, and smooths their difference. It then tracks upward and downward changes in that smoothed series with separate exponential averages, forming a relative-strength style measure.
The listed settings include the two moving-average periods, smoothing and RSI periods, applied price, and overbought and oversold levels. The text provides calculation steps but omits the final displayed oscillator formula, so the precise output scaling and interpretation cannot be recovered from this excerpt alone. It gives no trading rules, examples, or performance testing. The indicator can therefore be understood as a technical signal recipe, but its usefulness and thresholds would need independent implementation checks and empirical evaluation.
Key ideas
- The indicator combines two exponential moving averages and smooths their transformed difference.
- It applies an RSI-like calculation to increases and decreases in the smoothed series.
- Users can adjust moving-average, smoothing, RSI, price, and threshold parameters.
- The excerpt omits the final oscillator formula and provides no trading rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.