Filtering RSI Signals with a Step Chart

Summary

This short description proposes applying a step chart as a filter to the Relative Strength Index. The step size is set as a percentage of RSI and represents the minimum change that qualifies as meaningful. The stated aim is to reduce the number of RSI signals and make the indicator easier to use. The suggested signal cue is a change in the step bar’s color.

The document explains the filtering concept and its intended use, but does not provide the calculation details, a chart example, specific parameter guidance, or a comparison with unfiltered RSI. It therefore offers no evidence that the filter reduces false signals or improves trading results. It also does not specify what each color means, how to interpret signals in different market conditions, or how to manage entries and exits. The idea is best understood as a visual thresholding approach whose usefulness would need evaluation on the instruments and time frames where it is applied.

Key ideas

• The method uses a step chart to filter changes in RSI.
• A percentage-based step size sets the minimum RSI change treated as significant.
• The described signal cue is a change in the step bar’s color.
• No formula, color definitions, parameter examples, or performance evidence are provided.

Tags

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