Corrected RSI for Identifying Flat and Trending Markets
Summary
The document introduces a modified RSI intended to help distinguish flat market periods from trending ones. It also displays the regular RSI as additional context, while identifying the corrected value as the main reading. Its suggested interpretation is to watch for a color change as a possible sign that the trend may be changing.
The note offers little detail about how the corrected value is calculated, what its colors represent, or how it was tested. It gives no performance evidence or rules for confirming a signal, so the color change should be understood as a possible cue rather than a validated trading trigger. It suggests that trend traders consider longer indicator periods, but does not specify settings or explain how to choose them.
Key ideas
- The corrected RSI is intended to distinguish flat periods from trending periods.
- Regular RSI is displayed as supporting context, while the corrected value is the primary reading.
- A change in color may indicate a possible trend change.
- Longer periods are suggested for traders following trends, without specific settings.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.