JMA Smoothing for a Normalized RSI

Summary

This note describes applying JMA smoothing to a normalized Relative Strength Index. The motivation is that normalized RSI can change direction erratically, making its slope difficult to interpret. Smoothing is intended to reduce that variation while preserving a slope that may be more usable and avoiding substantial added lag.

The note also explains that setting the normalization period to one or less disables normalization, leaving a standard RSI. It does not provide the full normalization formula, parameter guidance beyond that setting, chart examples, or a defined entry and exit strategy. No backtest or comparative evidence is included, so the claimed reduction in erratic movement and limited lag should be treated as the indicator's stated aim rather than a demonstrated result.

Key ideas

• The indicator applies JMA smoothing to normalized RSI values.
• Smoothing is intended to reduce erratic changes in the indicator's direction.
• A smoother RSI slope is presented as potentially easier to use without substantial lag.
• A normalization period of one or less leaves a standard RSI.
• The note gives no backtest, parameter study, or trading rules.

Tags

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