🧠SmartRSI

SmartRSI Product Guide | Invader Inc.

SmartRSI is a momentum-based indicator that measures the speed and magnitude of recent price changes to identify overbought and oversold conditions. Similar to the classic Relative Strength Index (RSI) indicator, SmartRSI calculates average price gains and losses over a given period of time.

The RSI framework was originally developed by J. Welles Wilder Jr. in 1978 to measure how quickly traders are bidding the price up or down. This result is plotted on a scale of 0 to 100, helping to answer questions like 'how high is high?' and 'how low is low?'

Since SmartRSI indicator is an innovative version of the legacy RSI indicator they share some similarities in terms of their underlying calculation and purpose: readings above 70 is generally considered overbought, while a reading below 30 is generally considered oversold:

However, there are some differences between the SmartRSI and the legacy RSI that traders should be aware of. SmartRSI is designed to be less reactive than the legacy RSI, which means that it tends to generate fewer false signals which naturally helps traders identify more reliable trends.