Relative Momentum Index Histogram and Overbought or Oversold Signals
Summary
The document describes an indicator that displays the Relative Momentum Index (RMI) as a color-coded histogram and marks overbought and oversold zones. It presents RMI as a momentum oscillator developed by Roger Altman and first published in 1993. The stated use is to refine the Relative Strength Index by incorporating momentum over a selected interval, with potential signals when price enters an extreme zone.
The page supplies a high-level description rather than implementation parameters, formulas, or a trading rule for entering and exiting positions. It offers no tests, performance evidence, or guidance on choosing thresholds or lookback settings. Traders would need to consult the underlying indicator implementation and independently assess how its signals behave across instruments and market conditions. Overbought and oversold readings alone do not establish a reversal, so the description should be treated as an introduction to an indicator rather than validation of a standalone strategy.
Key ideas
- The indicator presents Relative Momentum Index values as a color histogram.
- It marks overbought and oversold zones as potential signal areas.
- The document describes RMI as a momentum oscillator intended to improve on RSI.
- It provides no detailed formula, parameter choices, or tested trading strategy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.