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MyRSI

Ehlers DSP oscillator rsi ehlers momentum smoothing

Ehlers' version of RSI that swings between -1 and +1.

Usage

Use as Ehlers smoothed RSI variant that applies cycle-aware filtering to reduce whipsaws while maintaining RSI-style overbought/oversold interpretation.

Background

Ehlers presents a smoothed RSI formulation that applies a Laguerre or SuperSmoother filter to the up/down ratio before computing the RSI index. This reduces the noise and oscillation of standard RSI without significantly increasing lag, producing more reliable overbought and oversold readings.

Parameters

  • length (default: 14): Smoothing length

Formula

[ CU = \sum_{i=0}^{length-1} \max(0, Price_i - Price_{i+1}) ] [ CD = \sum_{i=0}^{length-1} \max(0, Price_{i+1} - Price_i) ] [ MyRSI = \frac{CU - CD}{CU + CD} ]

Source