RSX on RSX
( RSX double
)
The power of using low-lag, ultra smooth indicators is that you can safely experiment with feeding one indicator to another without signal degradation. Here is one such example...
The "RSX Double" indicator feeds the output of RSX on price to another RSX and plots a blended combination of the single and double RSX results. . A single application of RSX analyzes trend directional strength, but a double-RSX analyzes trend acceleration. This synchronizes RSX with rapid market reversals, typically found in a tight trading range.
The chart shows the S&P500 and the RSX Double oscillator. To this chart we added a simple strategy designed to enter long when the oscillator is rising and exit when falling.