Cyclic Smoothed RSI with Adaptive Bands

Summary

The cyclic smoothed RSI modifies a conventional RSI using a dominant market cycle length as an input. It applies additional smoothing with a phase adjustment, then estimates adaptive upper and lower bands from the indicator’s recent range over a cyclic memory window. The plotted RSI and bands are intended to make threshold crossings responsive to the market’s cycle, while the familiar fixed RSI reference levels remain visible for comparison.

The description says traders can interpret crossings above or below the adaptive bands as potential signals and claims the result responds more quickly than basic RSI. It points to a historical Bitcoin example but provides no systematic backtest, sample details, or comparative performance statistics. The dominant cycle must be estimated separately, and the indicator’s output depends on that estimate and its smoothing and memory settings. The provided script offers a calculation method rather than a complete trading system, so it does not specify position sizing, exits, or risk controls.

Key ideas

• The indicator uses a user-supplied dominant cycle length to set its RSI calculation and cyclic memory.
• A phase-adjusted smoothing step produces the cyclic-smoothed RSI line.
• Adaptive upper and lower bands are estimated from the recent range of the smoothed RSI.
• Crossings of those bands are presented as potential signals, but the document provides no systematic performance evidence.
• The method depends on deriving a suitable dominant cycle and does not define trade sizing or risk management.

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