Step RSI Uses Two Adaptive Step Lines to Filter Oscillator Whipsaws

Summary

The Step RSI indicator combines a standard Relative Strength Index with fast and slow step lines. Each line tracks RSI movement using a separate step-size setting, changing in increments when RSI moves far enough. The example uses an RSI period of 14 and step sizes of 5 and 15, and plots the RSI alongside reference levels at 30, 50, and 70.

The document suggests using the step lines to identify breaks from RSI-defined zones or to filter whipsaws in the original oscillator. The two speeds offer a way to compare shorter and broader RSI movements. However, it provides no trading rules for entries or exits, performance evidence, or guidance on choosing parameters. It describes an indicator concept and implementation rather than demonstrating that either suggested use is profitable.

Key ideas

• The indicator pairs a conventional RSI with fast and slow step lines derived from RSI movement.
• The fast and slow lines use separate step-size settings to respond at different scales.
• The lines may help identify RSI zone breakouts or filter whipsaws in the original oscillator.
• The example displays reference levels at 30, 50, and 70.
• The document gives no backtest results or parameter-selection guidance.

Tags

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