TanHef

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.

CALCULATION
  • 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

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