Smoothing an RSI Histogram and Its Dynamic Thresholds

Summary

This indicator adds averaging to an RSI histogram and also smooths its dynamic overbought and oversold levels. The settings include an RSI period and applied price, a volume type, upper and lower threshold values, a smoothing method and length, a method-specific phase parameter, and a horizontal shift. The stated defaults use a 14-period RSI, tick volume, thresholds from plus or minus 15 to plus or minus 20, and a smoothing length of 12.

The description identifies a dependency on an external smoothing library, but provides little detail about how the histogram itself is calculated, how volume affects it, or how to interpret crossings and threshold changes. It offers no chart examples, trading rules, backtest results, or evidence that smoothing improves signals. The note is therefore useful mainly as a concise account of the indicator's configurable components; users would need implementation details and testing before drawing conclusions about its behavior.

Key ideas

• The indicator averages the RSI histogram output.
• It also applies averaging to dynamic overbought and oversold levels.
• Inputs control RSI settings, volume type, threshold values, smoothing, and chart shift.
• The document supplies configuration details but no 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.