Moving Average RSI (MARSI)
DescriptionThe Moving Average RSI is exactly what the name suggests: an SMA on an RSI. The MARSI is somewhat more sluggish in its reaction than the RSI but also exhibits less "interference".
CalculationAs described above, first an RSI is calculated and then an SMA on top of that.
Formula
ParametersThe parameters of the RSI and the SMA. Both are usually set to 14.
InterpretationThe MARSI can be interpreted exactly as for the RSI. A somewhat more advanced application involves plotting the MARSI together with the RSI, with a view to generating trading signals in this way. Then an RSI that is smaller than 35 but larger than the MARSI is interpreted as a buy signal. An RSI larger than 65 but smaller than MARSI is regarded as a sell signal.
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