Theory :

Some might think that using smoothing prior to rsi calculation is the same as smoothing the rsi value. As a vivid example, you can compare this version (when the RSI is smoothed after the calculation) to the version that uses (smoothed prices (originally published here : RSI of AMA ). As you can see they are quite different in a lot of ways. And it also shows why a "generalized" AMA was needed (now it can calculate smoothed value of any other value, not just of price).. But, in order to make it more usable (since the color change of the slope change or some fixed level cross tend to be "not-so-usable" signals) this version adds floating levels to the indicator.

Usage :

It can be used in a same way as any Ris(oma) indicator or as any Rsi itself. Or you can use color changes as signals