Trend Envelopes RSI with Optional Pre-Smoothing

Summary

This document describes a variation of the Relative Strength Index that can apply a moving average to its input before calculating the indicator. The available smoothing choices are simple, exponential, smoothed, and weighted moving averages. Setting the smoothing period to one or less disables this step. The stated purpose of pre-smoothing is to reduce false signals, though the document provides no tests or measured results to establish whether it does so.

The displayed value is constructed by combining RSI calculations based on high, low, and closing prices, then dividing their sum by thirty, as specified in the source. The author describes this as a generic RSI and says it is not equivalent to other RSI types. No trading rules, signal thresholds, market settings, performance evidence, or limitations beyond the indicator’s distinct construction are provided. Readers therefore get a description of the calculation options, not evidence that the indicator improves trading decisions.

Key ideas

• The indicator is an RSI variation that can smooth its input before calculation.
• Available smoothing methods are simple, exponential, smoothed, and weighted moving averages.
• A smoothing period of one or less disables pre-smoothing.
• The displayed measure combines RSI calculations based on high, low, and closing prices.
• The document provides no performance tests or trading rules for interpreting the indicator.

Tags

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