Theory:
As traders, we're familiar with the different types of RSI—regular RSI, RSI of averages, and more. But have you ever tried the RSI of the Parabolic SAR? Instead of relying on price data, this version utilizes the Parabolic SAR, and the results are quite intriguing. They make sense logically, so I thought it was worth sharing with you all!
Just a quick note: the RSI used here employs double smoothed Wilder's EMA rather than the standard Wilder's EMA. This tweak gives us results that are smoother and respond a bit quicker.
Usage:
You can apply this indicator just like any regular RSI. It's straightforward and fits seamlessly into your trading strategy.
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