A T3-Smoothed RSI Variant for Trend Confirmation

Summary

This document describes a modified RSI indicator intended to confirm signals from trend indicators. It combines a four-part main line with period shifts and adds a smoothing line based on the T3 method. Bollinger Bands around the smoothed line are meant to make changes easier to see, while signals are placed in separate buffers to simplify use in trading systems.

The text explains the indicator’s design choices but provides no formula, parameter settings, chart examples, performance results, or rules for interpreting its signals. The author explicitly advises against using it as a standalone trading tool. Its value therefore depends on how it is paired with a separate trend method and validated for the instrument and timeframe in use; the document offers no evidence that it improves trading outcomes.

Key ideas

• The indicator modifies RSI and is designed to confirm signals from trend indicators.
• Its main line combines four components with period shifts.
• A T3-based smoothing line and Bollinger Bands are added to clarify changes.
• The author cautions against using the indicator on its own.

Tags

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