Schaff Trend RSI: Applying RSI to MACD Values
Summary
The Schaff Trend RSI is described as an indicator that applies the relative strength index (RSI) to moving average convergence divergence (MACD) values. This distinguishes it from the Schaff Trend Cycle, which the document characterizes as a smoothed stochastic calculation based on MACD. The note also compares the indicator loosely with applying RSI to a moving average, while emphasizing that the calculations differ.
No formula, parameter settings, chart example, trading rules, or performance evidence are provided. The document specifically cautions that Schaff Trend RSI values should not be expected to resemble Schaff Trend Cycle values, since their calculation methods produce different results. It therefore offers a brief conceptual distinction rather than guidance on interpreting signals or using the indicator in a strategy.
Key ideas
- Schaff Trend RSI applies RSI to MACD values.
- The document distinguishes this construction from the Schaff Trend Cycle’s smoothed stochastic approach to MACD.
- Its values should not be assumed to match those of the Schaff Trend Cycle.
- The note gives no parameters, signal rules, or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.