RSX


RSX (Relative Strength Quality Index) indicator permits more accurate analysis, helping you avoid many Trades that would have been prematurely trigged by the jagged RSI.

However, RSI is a jittery signal, making Technical Analysis (TA) very difficult.
1. Jitter produces false trade triggers
2. Jitter degrades market trend direction analysis
3. Jitter degrades market reversal analysis

In the classical RSI, trend strength is measured by taking Separate moving averages of the Up changes and Down changes in Price.
The original formulation called for a Simple Moving Average (SMA), however, more contemporary implementations use an Exponential Moving Average (EMA)
Either way, these Averaging techniques introduce significant Lag and noise into the Signal action, thereby degrading its Quality.

In contrast, RSX uses Filtration with very low Lag and superior Smoothness. As shown in the Chart below, the difference is striking !