Description

• This indicator was developed by John Ehlers
• This smoothes RSI by calculating its average over default 9 bars

Interpretation

• If the difference is positive, it indicates a close up and if the difference is negative, it indicates a close down
• Strength Index level below 30 indicates over-sold condition
• Relative Strength Index level above 70 indicates over-bought condition

Default Parameters Used/Inputs

• Price Line
• RSI Bars
• Smooth Bars
• Avg Type
• Avg Bars

Returns/Output

Smoothed RSI values of the stock

Formula

RSIS[X]=RSI(EMA(I[X],1..SmoothBars),1..RSIBars)
RSIS Avg[X]=Avg(RSIS[X],1..AvgBars,AvgType)
where RSIS indicates Smoothed Relative Strength Index
I[X] indicates input line