Using RSX Applied to RSX as a Trading Indicator

Summary

The document describes an indicator formed by calculating the Relative Strength Quality Index (RSX) and then feeding that calculated series into a second RSX calculation as though it were price data. It attributes the underlying idea to Mark Jurik, identified as the original inventor of RSX. The indicator is presented as a transformation of an existing oscillator rather than a separate price-based calculation.

Only two inputs are specified: the RSX period and the price series used for the initial calculation. The suggested use is to treat a change in the indicator's color as a signal. No precise entry or exit rules, parameter values, market examples, performance results, or risk controls are provided. Consequently, the description explains the indicator's construction and a possible visual cue, but it does not show whether color changes are profitable or how the signal should be validated across instruments and time periods.

Key ideas

• The indicator applies RSX to a price series and then applies RSX again to the first result.
• The construction is attributed to Mark Jurik's idea of calculating RSX from RSX.
• The stated inputs are an RSX period and a price series.
• A change in the indicator's color is suggested as a possible signal.
• The document gives no backtest evidence, trading rules, or risk-management guidance.

Tags

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