Momentum in trading refers to the speed of the price change. Momentum indicators measure this speed, which can be helpful to see an upcoming trend change.
Cutlers RSI is a simple moving average based version of the popular Relative Strength Index momentum oscillator which was developed by J. Welles Wilder and detailed in his book New Concepts in Technical Trading Systems. It analyses Average Gains and Average Losses to measure the speed and magnitude of price movements. The RSI is always between 0 and 100, with stocks above 70 considered overbought and stocks below 30 oversold. Divergence between the price and RSI can also be analysed for potential reversals. Average Gain is calculated as an SMA of the gains in the Period. The Average Loss is similarly calculated using Losses.
Harris RSI is a variation of the standard Relative Strength Index (RSI) used in technical analysis. This indicator follows similar principles to the classic RSI by indicating overbought or oversold conditions in an asset, helping traders assess momentum and trend changes. However, specific features distinguish it: Trend OB/OS: It signals an uptrend when above the overbought level and a downtrend when below the oversold level. Overbought/Oversold Indicator: Values above a certain threshold (overbought) or below a certain threshold (oversold) indicate potential price reversals. 50-Cross Signal: Crossing above the 50 line suggests bullish momentum, while a drop below indicates bearish momentum[1]. This variant provides an additional layer of nuance for trend analysis, focusing on trend strength as well as reversal points.
ARSI, or the Asymmetrical Relative Strength Index, is a technical indicator that builds upon the traditional Relative Strength Index (RSI) by focusing on smoothing out market noise to identify trends more clearly. It was developed by Sylvain Vervoort to address some limitations of the standard RSI by using asymmetrical adjustments. This adaptation aims to provide clearer signals for entry and exit points in trading by making trend direction and strength more evident in volatile markets. The ARSI modifies the original RSI calculation by using a moving average and standard deviation to help filter out noise, improving the accuracy of identifying significant market moves. This can help traders respond earlier to market changes, with ARSI designed particularly for detecting both bullish and bearish momentum shifts more effectively
This indicator implements the Ultimate Strength Index (USI) indicator, introduced by John Ehlers in his article titled "Ultimate Strength Index (USI)" from the November 2024 edition of TASC's Traders' Tips. The USI is a modified version of Wilder's original Relative Strength Index (RSI) that incorporates Ehlers' UltimateSmoother lowpass filter to produce an output with significantly reduced lag.