Using Adaptive Moving Average to Create RSI Floating Levels

Summary

This indicator description explains a variation of the Relative Strength Index that applies Vitali Apirine’s Adaptive Moving Average (AMA). The stated aims are to filter insignificant price movements and make RSI values more pronounced, especially when longer calculation periods can flatten the indicator’s behavior. The AMA is used to address those aims, while floating levels are added to make the resulting signals more usable than relying only on a slope color change or a fixed threshold crossing.

The description says the indicator can be used like other RSI-based indicators, or traders can treat its color changes as signals. It provides no parameter settings, formula details, charts, backtest results, or rules for interpreting the floating levels. The proposed uses are therefore broad guidance rather than a tested trading system; readers would need to inspect the indicator’s implementation and evaluate it on their own data before relying on signals.

Key ideas

• The indicator applies an Adaptive Moving Average to RSI to filter insignificant price changes.
• The design aims to make RSI readings more distinct when longer calculation periods flatten their movement.
• Floating levels are added to improve signal usability compared with relying on fixed levels or slope changes alone.
• Color changes can be used as signals, though the description gives no validation or specific entry rules.

Tags

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