RSI Signal Indicator with Smoothed Crossovers and Histogram Options
Summary
This indicator presents three RSI lines with different lookback periods, then smooths the first RSI line with a moving average and optionally applies a second moving average to that result. Crosses between the smoothed RSI and its second average can serve as potential signals. Histograms can represent either the first RSI or its smoothed version, with colors based on the smoothed line’s direction or its relationship to the raw RSI.
The indicator shifts RSI values and user-specified overbought and oversold levels down by 50 so the center is zero, which makes histogram display convenient. Parameters control periods, price input, smoothing methods, visibility, color levels, and background shading. It describes display and configuration features rather than a tested trading strategy; it provides no performance evidence or rules for entries, exits, or risk management.
Key ideas
- The indicator displays three RSI periods and can smooth the first RSI line with a moving average.
- A second average of the smoothed RSI can provide crossover points for potential signals.
- Histogram modes show either the first RSI or its smoothed value, with selectable color logic.
- RSI readings and threshold levels are shifted by 50 to center their display around zero.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.