Smoothed RSI by Mehmet Yildizli - SORSI assume that most of you already know Relative Strength Index indicator. It gives us the following signals in general, when we see the following conditions occur. If RSI crosses;
1. 30 above, it means BUY signal.
2. 50 above, it means WAIT signal.
3. 70 above, it means WAIT and be careful for SELL signal.
4. 70 below, it means SELL signal.
5. 50 below, it means WAIT signal.
6. 30 below, it means WAIT and be careful for BUY signal.
On the other hand, RSI sometimes crosses those reference levels very often in the opposite direction. This is a very big problem, in fact. It may cause you lose money.
That'is it!. This indicator (Smoothed Relative Strength Index by Mehmet Yildizli - SORS) is a new version of Relative strength index that moves smoothedly. Therefore, it doesnt cross those reference levels listed above, very oftenly in the opposite directions.
There two lines of this indicator. First is RSI line. You can change the parameters of RSI on the settings window of the indicator. The interpretation of the indicator is the same with the classic RSI indicator, as represented above.
Other line is the signal line. This signal line is calculated of RSI line according to the DEMA(Double Exponential Moving Average) approach.
You can change the parameter of signal line on the settings window.
Hope you will like and benefit!
