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Re: Heiken Ashi Type Indicators

mrtools, Tue Dec 20, 2022 3:02 am

moey_dw wrote:
Mon Dec 19, 2022 10:36 pm
Whoaaa thank you Mrtoolz...... would u help us know a bit more about Trend Emphasized RSI please??

Because the latest update on this is just simply the best!!!!
Best I can do is share Mladen's explanation:

By definition RSI belongs to momentum family of indicators. Hence making a "momentum emphasized" indicator might be strange idea.

The idea is yet another attempt to address one of the know issues of RSI : the "flattening". In short, if you use levels when using RSI to determine any type of signals or triggers, you might find yourself wondering what is going on when using longer periods since RSI is going to be more and more like a flat line, and not like any kind of momentum, and then your RSI will never cross the levels of interest

There are some ways to bypass that (like using any kind of dynamic levels - which, btw, this indicator has too), but when it comes to using fixed levels it is more or less left to discretion of the trader to adjust levels for each and every RSI period in order to get some usable readings. This indicator is a "real RSI" (ie: it is calculated the way how any Wilder's RSI is calculated) but it has a special way it adjusts itself to produce much more "momentum like" results and to avoid the "flattening" issue

Some examples that will clarify the above stated a bit more :
The usual 14 period RSI


Same thing just period 50 used (see the lower RSI - that is the "regular" built in RSI and this way you can see what happens to "regular" RSI when long periods are used :
Capture cb.png

This way the levels are remaining more usable and the RSI itself is not "deformed" to the degree that it could not be called RSI any more.

From looking in the code even though it's called trend emphasized, it looks the same as momentum emphasized to me. Think it is maybe best to just call it Rsi emphasized.
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