Using RSX to Assess Trend Strength and Generate Signals

Summary

This brief indicator description presents a trend-strength measure based on RSX, a smoothed variant of RSI. The general aim of a trend-strength indicator is to distinguish meaningful changes in an underlying indicator from smaller fluctuations, treating the former as evidence that a trend may be forming.

The proposed version uses RSX as its input because the source characterizes it as smooth while avoiding lag. It claims this can support entry signals with fewer false indications, but provides no formula, parameter settings, chart examples, performance measurements, or test methodology. The idea is therefore an indicator concept rather than evidence of a validated trading strategy; signal quality would depend on implementation and market conditions.

Key ideas

• Trend strength is intended to identify when changes in an indicator may reflect a meaningful trend.
• The described measure uses RSX in place of a smoothed RSI input.
• The source argues RSX smoothing without lag may help produce entry points with fewer false signals.
• No calculation details or empirical validation are provided, so the claimed signal quality remains unsubstantiated.

Tags

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