RSX Signals from Adaptive Average-Filtered Prices

Summary

This note describes an RSX indicator calculated from an adaptively averaged price series rather than raw price. It suggests that smoothing prices before calculating RSX may filter some false signals at their source, while the adaptive average makes the resulting indicator adaptive as well. The proposed average types include simple, exponential, smoothed, and linear weighted moving averages.

For signals, the note recommends experimenting with parameters and using the indicator in familiar ways: follow its slope or watch crossings of selected levels. It provides no parameter values, examples, market-specific guidance, comparative tests, or performance results. The claimed noise reduction is therefore an explanation of the design rationale, not demonstrated evidence; users would need to assess the chosen average and settings against their own data and account for the lag introduced by smoothing.

Key ideas

• The indicator applies RSX to an adaptively averaged price series instead of raw price.
• Price smoothing is intended to remove some false signals before they affect RSX.
• Possible average types include simple, exponential, smoothed, and linear weighted averages.
• Potential signals come from the indicator's slope or crossings of chosen levels.
• The note provides no parameter guidance or empirical evidence for signal quality.

Tags

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