What is a Step indicator?
A Step indicator is the process of visually breaking a sloped line, into "steps". These steps display incremental values in step size. Step size can be specified as pips, and is adjustable within the indicator's options.
How do Steps help in trading?
Technical analysts often use the "slope" of a moving average as a signal, but in ranging markets, an average's slope change will produce a lots of signals. Steps are useful in these conditions as they help to lessen the number of signals by filtering out insignificant changes in an average.
Below is a Step RSI with Floating Levels, the rsi has 6 different rsi option types:
- Regular RSI
- Slow RSI(wilders)
- Rapid RSI,Harris RSI
- Cuttlers RSI
The Step RSI can be smoothed with a zero lag moving average with a double smooth option, if the smoothing is not desired set the smoothing to less than or equal to 1. The coloring and alerts of the rsi has 4 options:
- Change color on slope change
- Change color on Step Rsi cross
- Change color on outer level cross
- Change color on middle level cross
The alerts should work depending on what option is chosen.