Overlaying RSI with a Smoothed Moving Average Channel

Summary

This document describes an indicator that plots the Relative Strength Index in the main price chart alongside a smoothed moving average. A channel marks the configured upper and lower RSI levels, making it possible to compare the RSI line with its average and to see when it reaches designated threshold areas. The indicator exposes settings for the RSI period, price input, smoothing method and depth, channel deviation, threshold levels, and horizontal shift.

The example defaults use a 14-period RSI, a 12-period smoothing depth, and levels at 60 and 40. These are configuration examples, not evidence that the levels produce profitable signals. The text explains the visual components and notes that the indicator relies on a separate smoothing library. It does not specify entry or exit rules, compare alternative parameter values, or report backtest results, so traders would need to evaluate any interpretation independently.

Key ideas

• The indicator overlays RSI and a smoothed moving average in the main chart window.
• A channel displays the configured upper and lower RSI levels.
• Users can adjust RSI period, smoothing settings, applied price, channel width, levels, and display shift.
• The example parameters describe an indicator configuration rather than a validated trading strategy.
• The document gives no trade rules or performance evidence.

Tags

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