Cutler’s RSI and Moving-Average Calculation Choices

Summary

Cutler’s RSI is presented as a relative strength index variant that uses a simple moving average as its basis, unlike the conventional formulation described here as using an exponential moving average. The indicator exposes settings for its period, averaging method, applied price, and overbought and oversold levels.

Its calculation compares smoothed positive and negative changes between successive moving-average values. The document also references illustrations for simple, exponential, smoothed, and weighted moving-average methods, suggesting that the averaging choice can be varied. It supplies no formula rendering, worked price example, parameter guidance, or performance comparison, so it does not establish how this variant behaves relative to other RSI implementations in trading.

Key ideas

• Cutler’s RSI is described as using a simple moving average as its basis.
• The indicator allows choices for period, averaging method, price input, and threshold levels.
• It smooths positive and negative changes between consecutive moving-average values.
• No empirical comparison or trading performance evidence is provided.

Tags

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