Indicators: Rsi(var) Zerolag DEMA

[Automated-Trading]

Rsi(var) Zerolag DEMA:

As it was shown in the Rsi(var) indicator, other Moving Averages can be used for calculation of an RSI indicator. This version is one more step in that direction.

Adding zero lag DEMA to the RSI calculation as a preferred smoothing method has two things as a result:

• It is "faster" - zero lag DEMA is an average with significantly reduced lag (even compared to Zero lag MA).
• Extremes (0 and 100) are reached much more often compared to regular RSI and that makes RSI as a momentum indicator even more useful.

Author: Mladen Rakic