Cutlers RSI

Cutlers' RSI is a variation of the original RSI Developed by Welles Wilder.
This variation uses a simple moving average instead of an exponetial.
Since a simple moving average is used by this variation, a longer length tends to give better results compared to a shorter length.

  • Step1: Calculating the Gains and Losses within the chosen period.
  • Step2: Calculating the simple moving averages of gains and losses.
  • Step3: Calculating Cutler’s Relative Strength ( RS ). Calculated using the following:
  • -> Cutler’s RS = SMA (gains,length) / SMA (losses,length)
  • Step 4: Calculating the Cutler’s Relative Strength Index ( RSI ). Calculated used the following:
  • -> RSI = 100 — [100/(1 + RS )]

I have added some signals and filtering options with moving averages:
  • Trend OB/OS: Uptrend after above Overbought Level. Downtrend after below Oversold Level.
  • OB/OS: When above Overbought, or below oversold
  • 50-Cross: Above 50 line is uptrend, below is downtrend
  • Direction: Moving up or down
  • RSI vs MA: RSI above MA is an uptrend, RSI below MA is a downtrend

The signals I added are just some potential ideas, always backtest your own strategies.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?