Using a Corrected RSX Oscillator and Color Changes as Signals

Summary

The document describes a corrected version of the Relative Strength Quality Index (RSX), based on a smoothing correction method associated with Dr. Alexander Uhl. The method was originally developed to filter moving averages and identify signals, but the post says it can also be applied to other indicators. Corrected RSX is presented as an oscillator that retains the smooth behavior of RSX while potentially serving as a trading signal source.

The suggested use is to treat changes in the indicator’s color as signals. The post offers no formula, parameter settings, chart examples, market context, or performance evidence, so it does not specify how to enter or exit positions or how the color changes should be interpreted. Its claims about usefulness are tentative and would require independent testing across instruments and market conditions.

Key ideas

• The indicator applies a correction method associated with Alexander Uhl to RSX.
• The underlying correction approach was first intended to filter moving averages and identify signals.
• The post suggests that corrected RSX may be used for trading despite RSX already being smooth.
• Color changes are proposed as the signal convention.
• No rules, parameter values, or empirical performance evidence are provided.

Tags

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