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RSX on JMA-smoothed Price

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One way to smooth an oscillator, such as RSX, is to run the oscillator's plot through a moving average. A better method is to pre-smooth price data PRIOR to feeding the oscillator.

In this experiment, we pre-smoothed price with JMA (set to run very fast) and ran the result through RSX. In the chart, note how incredibly smooth and timely the plot appears. It reverses with the market, showing almost no lag.



Additional code was written in TradeStation 8 to produce the RED-BLUE color changes.



In the next experiment, we used three different speeds of JMA to show how it affects RSX. Each successive plot used JMA set to a slower speed. Note how a slower JMA makes RSX reverse direction less frequently. This lets the user fine-tune RSX response to market reversals.







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