Adaptable RSI: Changing the Smoothing Method in RSI Calculations

Summary

This indicator description presents an RSI variant that lets users choose the moving-average method used to smooth gains and losses. Standard RSI is described as using a single smoothing approach, while this version exposes the calculation period, smoothing method, applied price, and overbought and oversold levels as configurable inputs.

The calculation follows the usual RSI structure: price changes are separated into positive gains and negative losses, each series is averaged using the selected method, and the ratio is converted to an oscillator on a 0-to-100 scale. The page compares charts using SMA, EMA, SSMA, and LWMA settings, but reports no quantitative tests or trading outcomes. Changing the smoothing method can alter the indicator’s responsiveness and signals; the document does not establish that any method is superior.

Key ideas

• The indicator allows the user to select the smoothing method for average gains and losses.
• Its inputs include period, applied price, overbought level, and oversold level.
• Price changes are split into gain and loss series before calculating the RSI-style ratio.
• The described comparisons include SMA, EMA, SSMA, and LWMA settings.
• The document provides chart comparisons but no evidence that a setting improves trading results.

Tags

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