Smoothed RSI with Discontinued Signal Lines
Summary
This indicator applies RSI to a moving average rather than directly to price, aiming to reduce the frequent direction changes that can make ordinary RSI harder to use. It then adds discontinued signal lines as possible entry and exit guides instead of relying only on fixed threshold levels.
The description suggests using it in the same general way as RSI of a moving average. A long signal-line period, such as 1000, is said to make it resemble a fixed-level version, while a very short period, such as 2, makes it resemble a simple slope mode. These are qualitative usage suggestions; the document provides no chart-based evidence, performance results, or detailed calculation rules. The settings should therefore be treated as examples rather than validated recommendations, and the indicator's signals are not shown to guarantee profitable trades.
Key ideas
- Applying RSI to a moving average is intended to smooth its responses to price changes.
- The indicator adds discontinued signal lines that can serve as entry or exit references.
- A long signal-line period is described as resembling fixed RSI levels.
- A very short signal-line period is described as resembling a simple slope mode.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.