RocketRSI: A Smoothed RSI with a Fisher Transform

Summary

RocketRSI is described as a variant of the Relative Strength Index that accumulates upward and downward changes in a filtered price momentum series instead of relying on averaged gains and losses. A Super Smoother filter is applied first, and the resulting normalized balance of positive and negative movement is then passed through a Fisher transform. The stated aim is to make turning points in cyclical price movement stand out as sharp indicator spikes. The source also includes overbought and oversold reference levels.

The author of the underlying method claims these spikes can identify cycle turns precisely, but the document provides no tests, market examples, or performance evidence to support that claim. Its description and included indicator implementation do not define a full trading system, position sizing, or risk controls. Signal behavior may depend on the selected smoothing and RSI lengths, and the text gives no guidance for choosing those settings across instruments or timeframes.

Key ideas

• RocketRSI applies a Super Smoother filter to price momentum before measuring directional movement.
• It accumulates positive and negative changes rather than using averaged gains and losses.
• A Fisher transform is applied to the normalized movement balance to emphasize extremes.
• The source proposes indicator spikes as possible cycle-turn signals but supplies no validation evidence.
• The indicator alone does not specify entries, exits, or risk management.

Tags

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