Synthetic RSI with Pre-Filtering and Ehlers Smoothing

Summary

This document describes a synthetic RSI indicator built from three RSI calculations. The combined value is calculated using a method that differs from a simple average, although the exact formula and settings are not supplied. Before the RSI calculations, the input prices can be pre-filtered; setting each EMA period to one or less disables that filtering step.

Compared with the referenced synthetic RSI version, this variant uses Ehlers-smoothed RSI rather than regular RSI, which the description says produces a smoother result. No chart, parameter recommendations, trading rules, backtest, or performance results are included. The text explains the construction at a high level but does not establish whether the extra smoothing improves signals or how much responsiveness it may sacrifice. Traders would need implementation details and testing on their intended markets and timeframes before drawing conclusions about its usefulness.

Key ideas

• The indicator combines three RSI instances into a synthetic value that is not their simple average.
• Input prices may be pre-filtered with EMA periods.
• Setting all EMA periods to one or less omits the pre-filtering step.
• This variant uses Ehlers-smoothed RSI to produce a smoother synthetic output.
• The description provides no trading 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.