Understanding Cutler's RSI Indicator for MetaTrader 5

If you're diving into the world of trading, you might want to take a closer look at Cutler's RSI. This unique version of the Relative Strength Index (RSI) relies on the simple moving average (SMA) rather than the usual exponential moving average (EMA).

Cutler's RSI comes with five key input parameters that can help you fine-tune your analysis:

Period - This refers to the calculation period;
Method - The method of calculation, which is set to SMA by default;
Applied Price - The price on which calculations are based;
Overbought - The level indicating overbought conditions;
Oversold - The level indicating oversold conditions.

Here's how Cutler's RSI is calculated:

Cutler's RSI = 100.0 - 100.0 / (1 + P/N)

In this formula:

P = MA(pos, Period, Method)  
N = MA(neg, Period, Method)  
pos, neg - positive and negative differences between the current and previous values of MA

Fig 1. SMA calculation method

Fig. 2. EMA calculation method

Figure 2. SMMA calculation method

Figure 4. LWMA calculation method

Understanding Cutler's RSI Indicator for MetaTrader 5

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