AMA-Smoothed RSI with Floating Signal Levels

Summary

The indicator discussion distinguishes smoothing the price series before calculating RSI from smoothing the RSI after it has been calculated. These operations can produce substantially different readings, so the choice of where smoothing occurs matters. The described version smooths RSI using an adaptive moving average and adds floating levels to make the indicator’s signals more usable.

The text suggests reading it like other RSI variants and says color changes can serve as signals. It does not define the floating-level calculation, provide parameter settings, or show chart examples or performance tests. As a result, it introduces an indicator design and possible signal interpretation, but does not establish that the signals predict returns or specify a complete trading strategy.

Key ideas

• Smoothing prices before calculating RSI differs from smoothing the resulting RSI values.
• The indicator applies adaptive moving average smoothing to RSI and includes floating levels.
• It can be interpreted like other RSI variants, with color changes offered as possible signals.
• The document supplies no parameter guidance, test results, or evidence of predictive performance.

Tags

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