Smoothed Relative Strength Index

Smooth Period: 3

RSI Period: 14

Average Period: 9

There are two lines plotted below the chart in the Smoothed Relative Strength Index indicator. 

1 – Green line represents Smoothed Relative Strength Index

2 – Red line represents the Average

The relative strength index (RSI) is one of the most popular momentum indicators.

According to the pattern of closing prices in the data, it calculates the strength of prices over the past 14 periods.

To learn more about RSI, please click here.

Smoothed MA indicators smooth the RSI line to make their trend curves smoother than the RSI line. As a result, the indicator line becomes less noisy.

RSI indicator readings are also applicable to smoothed RSI indicator.

The RSISI is considered bullish when it is above 50. The RSI indicates bearishness when it falls below 50.

The RSI above 70 is considered to be an overbought condition, while the RSI below 30 is considered to be an oversold condition. However, there is much more to be learned about RSI.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.