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Adapting an Exponential Moving Average with Cutler’s RSI

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Summary

This indicator adapts an exponential moving average using Cutler’s version of the Relative Strength Index. The premise is that RSI, as a bounded momentum measure, can help represent changing market conditions and guide an average to respond differently as conditions vary. The method is presented as an alternative to an earlier adaptive EMA that uses the standard Wilder RSI.

The EMA can accept fractional periods, which makes it suitable for adjustments that are not limited to whole-number lengths. Users choose the Cutler RSI period and the price series used in the calculation, then apply the result much like a conventional moving average. A color change may be treated as a signal, though the text advises caution. The document describes the indicator’s construction and basic use, but gives no formulas, parameter recommendations, backtest, or performance evidence; it therefore does not establish that the adaptive version improves trading results.

Key ideas

  • The indicator uses Cutler’s RSI to adapt an exponential moving average to market conditions.
  • RSI is used as a bounded momentum input for adjusting the average.
  • Fractional EMA periods allow smoother adjustments than integer-only periods.
  • Users set the RSI period and input price, and may interpret color changes cautiously.
  • The description supplies no performance tests or recommended settings.

Tags

Technical indicatorsMomentumVolatility

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