Filtering RSI Signals with a Smoother Average

Summary

This brief indicator note describes filtering relative strength index signals with a smoother average. The smoother is applied to the RSI as a way to reduce or alter the signals generated by the underlying oscillator. A period setting of one or less disables the smoothing, allowing the user to compare filtered and unfiltered behavior.

The note suggests using changes in the indicator’s color as signals, but does not define entry or exit rules, explain how colors map to market conditions, or report tests. It identifies the smoother as sometimes being called a Jurik smoother, while cautioning that this label may be inaccurate. No markets, parameter values, performance evidence, or risk controls are provided, so the description is best treated as a basic indicator configuration idea rather than a complete trading strategy. Any use would require specifying rules and evaluating them against suitable data.

Key ideas

• The indicator filters RSI signals with a smoother average.
• A smoother period of one or less turns off the filtering.
• Color changes are suggested as potential signals, but their precise interpretation is not described.
• The note gives no backtest results or complete entry, exit, and risk rules.

Tags

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