Relative Momentum Index: Momentum Lookback and RSI-Style Signals
Summary
The Relative Momentum Index (RMI) adapts the Relative Strength Index by measuring price changes over a chosen momentum interval instead of comparing adjacent bars. Its calculation otherwise follows a similar structure. The momentum interval can be set to one, in which case RMI matches RSI; a separate period parameter controls the indicator’s lookback.
The document describes RSI-style interpretation: indicator turning points may precede local price highs and lows, chart patterns can appear in the indicator, and divergences may be observed. It attributes the indicator to Roger Altman and dates its publication to 1993. No performance tests, trading rules, or evidence that these signals are profitable are provided, so the material explains the indicator’s construction and common reading rather than validating a strategy.
Key ideas
- RMI uses price changes over a selected momentum interval rather than adjacent-bar changes.
- A momentum interval of one makes RMI equivalent to RSI.
- RMI is interpreted using RSI-like turning points, chart patterns, and divergences.
- The document provides no empirical assessment of signal performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.