The RSI works best in trading ranges rather than trending markets. As a momentum indicator, the relative strength index compares a security's strength on days when prices go up to its strength on days when prices go down. Relating the result of this comparison to price action can give traders an idea of how a security may perform.
What is Cutler's RSI?
Cutler’s RSI is a variation of the original RSI indicator developed by Welles Wilder. It uses a simple moving average in its calculation instead of the smoothed moving average used in Wilder’s original RSI formula. The above charts were done by using Amibroker. This is a good trading platform, and you can read our thoughts on this link:
What indicators are used with RSI & Ichimoku?
Ichimoku Cloud: A technical indicator used in conjunction with RSI. Lagging Indicator: An indicator that follows price movements, like RSI. Leading Indicator: An indicator that predicts future price movements. Moving Average Convergence Divergence (MACD): A popular technical indicator used alongside RSI.
