RSIOMA: RSI of an Exponential Moving Average with a Signal Average

Summary

The document describes RSIOMA, an indicator built by applying the relative strength index to an exponential moving average of closing prices, then smoothing that RSI with a second exponential moving average. It supplies parameter examples: 14 periods for the first average and RSI, and 21 periods for the smoothing average. It also lists potential reference levels at 20, 50, and 80, labeled for selling, major trend, and buying.

The indicator is presented as a trend tool, and its two plotted series are the RSI value and its smoothed average. The document gives no chart examples, backtest, asset or timeframe guidance, or evidence that the suggested levels produce reliable signals. The thresholds are comments in the code rather than a tested trading rule, so interpretation and validation are left to the user.

Key ideas

• RSIOMA applies the RSI to an exponential moving average of closing prices.
• A second exponential moving average smooths the resulting RSI series.
• The example uses 14 periods for the initial average and RSI, and 21 periods for the smoothing average.
• The document identifies 20, 50, and 80 as possible sell, trend, and buy reference levels.
• No performance evidence or tested entry and exit rules are provided.

Tags

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