Why Smoothing RSI Differs from Smoothing Price Before RSI

Summary

This note distinguishes two ways to combine adaptive moving average smoothing with the Relative Strength Index. In the described version, RSI is calculated first and then its output is smoothed using an adaptive moving average. The alternative smooths price data before calculating RSI, a method associated in the document with an RSI-of-AMA variant.

The author says the resulting indicator series differ substantially and presents that contrast as the reason for generalizing the adaptive moving average so it can smooth values beyond price. The note suggests using the smoothed RSI like other RSI variants, but gives no parameter guidance, trading rules, chart evidence, or performance tests. It explains an indicator construction choice rather than demonstrating a trading advantage.

Key ideas

• Smoothing RSI after its calculation is distinct from smoothing prices before calculating RSI.
• The two construction methods can produce substantially different indicator values.
• A generalized adaptive moving average can smooth data series other than price.
• The document offers RSI-style usage but no signals, settings, or performance evidence.

Tags

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