RSIV-1: A Linear-Regression RSI Variant with 25 and 75 Levels

Summary

RSIV-1 is presented as a modified Relative Strength Index that responds more quickly to changes in direction. It first measures closing price relative to a linear regression of price, then separates rising and falling changes over a rolling period. The method combines summed positive and negative movements with counts of their respective directional periods, using multiplication rather than the conventional RSI’s smoothed average gains and losses. The suggested reference levels are 25 and 75.

The author’s explanation says multiplication gives larger movements more influence and increases sensitivity to volatility, while the regression component helps the measure adjust quickly. The document supplies an indicator formula and settings, but no charts, backtest, comparison results, or evidence that its signals are profitable. It also gives no entry, exit, or risk rules. The levels and behavior should therefore be treated as design choices to evaluate, not established performance claims.

Key ideas

• RSIV-1 measures price changes relative to a linear regression of closing prices.
• It multiplies summed directional movements by counts of periods moving in each direction.
• The proposed reference levels are 25 and 75.
• The author attributes greater volatility sensitivity to the multiplication step.
• The document provides no performance testing or complete trading rules.

Tags

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