Using Double-Smoothed Wilder Smoothing in RSI

Summary

This note describes an RSI variant that replaces the usual Wilder smoothing step with a double-smoothed Wilder exponential moving average. Its stated aim is to make the indicator less reactive than one based on a conventional EMA while retaining a smoother slope. The author also argues that this treatment can reduce periods when RSI becomes excessively flat.

The suggested use is the same as for a standard RSI. The document points to a visual comparison between the regular RSI and the modified version, claiming the latter shows less flattening while remaining reasonably smooth. It provides no formula details, parameter settings, numerical evaluation, or trading results, so the claimed benefits are qualitative and would need to be checked on the relevant instruments and timeframes.

Key ideas

• The variant uses double-smoothed Wilder EMA in the RSI calculation.
• The intended effect is to reduce RSI sensitivity while preserving a smooth slope.
• The author says the altered smoothing can lessen prolonged flat readings.
• The comparison is visual and qualitative, with no reported trading performance.

Tags

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