This is fooling around with one property of RSI : the longer the RSI calculation period, the flatter the rsi value becomes. This indicator was made to see what would CCI do to such a "flat" rsi value. The result is as on the example picture : it enhances the rsi again and it seem to make sense (especially the zero crosses). Some experimenting with it needed
PS: on the example upper is the CCI of RSI lower is the same length (50) rsi
Impressive Would it be possible to use super smoother on this one?
Here is a version that smooths the result using super smoother. To turn the smoothing of, set the smooth period to <= 1. Default smoothing is a very mild period 5 (with very low lag - see the comparion on the example picture)
Great It was fast! Thank you, Mladen for your invaluable work.
Nice addition to the RSI thread.
Is this the same as the Rsi posted in the elite section with super smoother in general?
As far as I remember, I haven't posted this kind (cci of rsi) indicator so far
Posting this to clarify some things that people are thinking about RSI
There are different ways of calculating RSI - as usual metatrader gave us a rather complicated source that calculates rsi and then it is no wonder that there are some misunderstandings as of how rsi can be calculated.
This version does the calculation in a simpler way (all in all a couple of lines) and allows you to experiment with 4 types of rsi. By default it is set to use SMMA in calculation (which gives the same results as the built in rsi - see the example) but with using other moving average types you can get 3 additional types of RSI (using SMA - ma method 0 - in calculation gives what is known as Cuttler's rsi)
And this one is showing what can be done when the calculation method of rsi from above is used and when averages are replaced with smoother. It gives results very close to rsx (as it is obvious) but it is still not exactly the same as rsx (due to a fact that rsx uses one specific way of smoothing). Difference in results is very small so we could even call this one a kind of an rsx, but for the sake of less confusion, I named it a rsi of a smoother 2.
So, all in all, knowing how something is calculated, gives us opportunity to actually make a completely new indicator, and that is what Mark Jurik exactly did : he took an rsi and replaced SMMA with a custom smoothing and named that RSX. We can make that way as much rsi types as we have smoothing or averaging ways, the list is endless.
So this one concludes the "how" can some new indicator be made and how can a long existing indicators be improved. This version is much smoother than the original rsi (less false signals) without any lag added to it which automatically makes it a better candidate for using in trading then the original RSI
Mladen, Is It possible to create a new version of your RSI_2SigMAs_mtf.Mq4 indi , using your RSI of smoother 2? . The MTF is optional .
Here is a version with 2 signal lines added to it