RSI Smoothed on an Exponential Moving Average of Price
Summary
This note defines an indicator that applies RSI to an exponentially smoothed price series, then smooths the RSI output with another exponential moving average. It identifies six configurable inputs: the source EMA period and applied price, the RSI period, the smoothing EMA period, and overbought and oversold levels.
The calculation is a two-stage process: first compute an EMA of the selected price, then calculate RSI from that series and apply a further EMA to the result. The document explains the formula and parameter roles, but gives no trading rules, market examples, performance evidence, or guidance on selecting settings. The overbought and oversold levels are listed as inputs but their use in signals is not described, so this is an indicator definition rather than a tested strategy.
Key ideas
- The indicator calculates RSI from an exponentially moving average of a selected price.
- A second exponential moving average smooths the RSI output.
- Users can set periods for the source EMA, RSI, and final smoothing EMA.
- Overbought and oversold levels are configurable, but their application is not explained.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.