Using RSI of Moving Averages to Identify Trend Changes
Summary
RSIOMA combines two moving averages with a Relative Strength Index calculation, then smooths the resulting RSI with another moving average. The indicator displays the RSI-based line and its smoothing in a separate panel, along with a histogram intended to make the current trend easier to read. The description says the values range from 0 to 100 and identifies crossings and histogram changes as potential indications of trend shifts.
The listed settings include periods and calculation modes for both moving-average stages, overbought and oversold trigger levels, and a midpoint used to classify bullish or bearish conditions. Alert options can use either the latest closed candle or the still-forming candle. These are configurable indicator conventions, not evidence of predictive accuracy: the document supplies no backtest, market, timeframe, signal-entry rule, or risk and exit method.
Key ideas
- RSIOMA calculates RSI from moving averages and smooths that RSI with another moving average.
- The indicator presents two lines and a histogram in a separate panel.
- Trigger levels mark overbought and oversold regions, while a midpoint classifies trend direction.
- Changing the periods affects the smoothness and frequency of signals.
- Alerts may reference a closed candle or an unfinished candle.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.