Skip to content
All library documents

Relative Momentum Index: Longer Momentum Lookbacks Smooth the RSI

Article MQL5 code base
Read the original

Summary

The Relative Momentum Index, developed by Roger Altman, is described as a variation of the Relative Strength Index. Instead of comparing each close with the immediately preceding close, it measures gains and losses relative to the close a chosen number of periods earlier. With a momentum lookback of one day and a 14-period setting, the document says the RMI is equivalent to a 14-period RSI. Increasing the momentum lookback makes its fluctuations smoother.

Like other oscillators, the RMI can remain in overbought or oversold territory for an extended time during strong trends, so those readings are not necessarily reversal signals. In non-trending markets, the document says it tends to move more predictably between overbought levels of 70–90 and oversold levels of 10–30. It provides conceptual guidance but no tested rules, market-specific evidence, or performance results.

Key ideas

  • The RMI compares closing prices across a configurable momentum lookback rather than only across adjacent days.
  • A one-day momentum lookback makes a 14-period RMI equivalent to a 14-period RSI.
  • Longer momentum lookbacks produce smoother oscillator fluctuations.
  • During strong trends, the RMI may stay overbought or oversold for an extended period.
  • The document describes more regular movement between stated threshold ranges in non-trending markets, without providing performance evidence.

Tags

Technical indicatorsMomentumEquities

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