I found an article about RSI MA indicator. So, I asked my mentor, what is an RSI with a moving average indicator? Luckily, he told me this:
RSI with moving average has been called MARSI. Also, anyone can use it to detect trends and find the right spots to enter your trades. The result is a smooth RSI line. The indicator is an RSI of a moving average.
To interpret the MA RSI
When the MA RSI crossed the 70 levels, an overbought signal may arise to signal a downward move. Traders and chartists tend to sell their positions. On the other hand, traders consider MARSI level below 30 as oversold.
The lookback period of RSI and Moving average are 30 and 13, respectively. Please optimize it to fit in the market you are trading. Also, optimize the RSI period, use Amibroker.
Moving average RSI
m=MA(C,13); marsi=RSIa(m,30); UL= Param("Upper Limit",70,0,100,1); LL= Param("Lower Limit",30,0,100,1); PlotGrid(UL,colorBlue); PlotGrid(LL,colorBlue); Plot(marsi,"MARSI",colorBlue,styleLine);
Once you learned to code this indicator, you have to backtest it in your Amibroker.
In RSI with a moving average indicator, you’ll have a smooth RSI to decide when to trade.
Johndeo Research has provided this AFL for educational purposes only. All in all, do not use MARSI if you have not backtested it yet.
Finally, if you like our post of Rsi Moving Average, please share it to your favorite social networks.
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