RSI Rendiment: Combining RSI with Logarithmic Price Change

Summary

RSI Rendiment is an oscillator that blends the standard Relative Strength Index with a logarithmic measure of price change over a selected lookback range. The document defines the combined value as the average of RSI and a scaled natural logarithm of the ratio between the current close and the close from the range bars earlier. A multiplier controls the contribution of that return component.

The indicator offers adjustable RSI and normalization periods, a normalization toggle and range, the return multiplier, and overbought and oversold levels. When normalization is enabled, the return component is rescaled using its minimum and maximum over the chosen range so it can be expressed on a 0–100 scale. The document shows normalized and unnormalized variants but provides no trading rules, market examples, or performance evidence. It therefore explains construction and configuration rather than establishing that the oscillator forecasts returns. Results may also depend on the selected periods, scaling, and normalization window.

Key ideas

• The indicator averages RSI with a scaled logarithmic price-change measure.
• The return component compares the current close with the close at a chosen lookback distance.
• Normalization rescales that component using its rolling minimum and maximum.
• Parameters include lookback periods, scaling, and overbought and oversold thresholds.
• The description provides no evidence that the indicator improves trading performance.

Tags

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