RSI Exponential

The Relative Strength Index Exponential indicator is a variation of the traditional RSI (Relative Strength Index). The main difference is that it uses exponential smoothing instead of simple moving averages. This gives this indicator more sensitivity to recent price changes, which can be helpful in identifying potential reversals more quickly.
Manufacturer: nt8indicators
SKU: RSIE
$9.90

How it works:

  • It calculates the relative strength of a security (the ratio of average gains to average losses).
  • The exponential smoothing helps give more weight to recent price movements, creating a more responsive oscillator.

Explanation:

  • Period: This is the period used to calculate, typically set to 14 by default but can be adjusted.
  • Smoothing: The signal line will be a simple moving average applied on the value.
  • Calculation: Finally, the value is calculated as 100 - (100 / (1 + rs)), where rs is the relative strength.

This indicator will be displayed as an overlay (or in a separate panel depending on settings) on your chart. You can adjust the Period for sensitivity.

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