Cutler's RSI is a variation of the traditional Relative Strength Index (RSI) created by Welles Wilder. Unlike the original RSI, which uses an exponential moving average (EMA) to smooth price changes, Cutler's RSI employs a simple moving average (SMA) for calculating the average of gains and losses. This difference in averaging methods results in a slightly smoother indicator that can be less volatile and more consistent over time, especially in varying market conditions.
Traders use Cutler's RSI to assess whether an asset is overbought or oversold, similar to the standard RSI, but its smoother nature may offer a distinct perspective on momentum shifts and trend reversals