D-Oscillator: Combining RSI and CCI with Smoothing

Summary

D-Oscillator combines a normalized RSI reading with the Commodity Channel Index (CCI), then applies two stages of exponential smoothing. The RSI is scaled using its rolling minimum and maximum over a configurable lookback, placing it on a centered scale. A coefficient controls how much the CCI contributes to the blended input versus the normalized RSI. The second smoothed line is calculated from the prior value of the first line, with a distinct smoothing factor.

The description identifies five adjustable inputs: RSI period, lookback for RSI extremes, CCI period, the CCI blend coefficient, and the smoothing setting. It provides formulas but no trading rules, chart examples, backtest, or performance evidence. The document therefore explains an indicator construction rather than demonstrating that it predicts price movements or improves a strategy. Its behavior depends on parameter choices and on the rolling RSI range; users would need to evaluate those choices and test signals in their own market and timeframe.

Key ideas

• The indicator blends CCI with RSI normalized by its rolling minimum and maximum.
• A coefficient sets the relative contribution of CCI and normalized RSI.
• Two sequential smoothing calculations produce the indicator lines.
• The listed parameters control the input periods, blend, and smoothing.
• The description provides no trading rules or evidence of profitability.

Tags

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