Applying RSI to Parabolic SAR Values

Summary

This indicator applies the Relative Strength Index to values from Parabolic SAR rather than to market prices. The author presents it as another variation in the RSI family and says it can be used in the same general way as a conventional RSI. In this construction, the input series is the SAR indicator, so the oscillator reflects changes in SAR values rather than directly measuring price gains and losses.

The calculation uses a double-smoothed form of Wilder’s exponential averaging instead of the simpler Wilder smoothing described as common in RSI calculations. The author says this produces a smoother and faster result, but supplies no formula, parameter settings, chart examples, test period, or quantitative evidence. No thresholds or trading rules are specified, so the post describes an indicator variant rather than a complete strategy; its stated usefulness and behavior cannot be independently assessed from the material provided.

Key ideas

• The RSI input is the Parabolic SAR series rather than closing prices.
• The resulting oscillator can be used in the general manner of a regular RSI.
• The calculation uses double-smoothed Wilder exponential averaging.
• The author describes the smoothing as faster and smoother but provides no supporting measurements.
• The document gives no parameters, thresholds, backtest, or complete trading rules.

Tags

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