Hey there, fellow traders! If you’re always on the lookout for ways to sharpen your trading strategies, you might want to take a closer look at the RSIH indicator, as discussed by John Ehlers in the January 2022 issue of TASC. This nifty tool improves upon the standard RSI by incorporating Hann windowing, which smooths out the calculations and helps you get a clearer picture of market momentum.
Here’s a side-by-side comparison with the built-in RSI:
The RSIH not only delivers a smoother calculation but also has a zero mean, which means it eliminates the need for any additional filtering. This can be a game changer for traders who want to streamline their analysis.
Here are some recommendations for using the RSIH:- Feel free to use it just like any other RSI indicator you’re familiar with.
- Since the RSI falls under the momentum family of indicators, keep an eye on color changes as they can hint at possible shifts in momentum.
- Watch for zero crosses; these can give you insights into longer-term trends.
Incorporating the RSIH into your trading toolkit could provide the edge you’ve been searching for. Happy trading!
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