Combining RSI with ATR-Based STARC Channels

Summary

This indicator combines the Relative Strength Index with STARC-style channels. A moving average smooths the RSI to form the center line, while upper and lower bands are offset by multiples of an average true range. The band multipliers can differ above and below the center, allowing asymmetric channel widths. The description presents the bands as narrowing in calmer conditions and widening as volatility increases.

The volatility calculation is based on absolute changes between consecutive RSI values, rather than price changes, despite the conventional STARC comparison. The document gives the indicator inputs and calculation outline, but provides no trading rules, chart examples, or performance evidence. It does not specify parameter choices or explain how to interpret channel touches, so users would need to define and evaluate those decisions separately. The result is a construction note, not a tested trading strategy.

Key ideas

• The indicator smooths RSI to create the center line of its channel.
• Channel boundaries are set using separate upper and lower multipliers of ATR.
• The described ATR uses absolute changes in RSI values rather than price ranges.
• Channel width is intended to respond to changing volatility.
• The document gives no entry rules or evidence of trading performance.

Tags

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