An RSI version called Cutler's RSI is based on the simple moving average, non on the exponential moving average.
It has five input parameters:
- Period - calculation period;
- Method - calculation method (SMA by default);
- Applied price - the calculation price;
- Overbought - overbought level;
- Oversold - oversold level.
Calculation:
Cutler's RSI = 100.0 - 100.0 / (1 + P/N)
where:
P = MA(pos, Period, Method) N = MA(neg, Period, Method) pos, neg - positive and negative differences between the current and the previous values of MA
Fig 1. SMA calculation method
Fig. 2. EMA calculation method
Figure 2. SMMA calculation method
Figure 4. LWMA calculation method
