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Does Welles Wilder apply a moving average to his original RSI, and if
so what kind? I don't have his book. Three other books I have give
three different interpretations. "The Encyclopedia Of Technical
Market Indicators", mentions an exponential MA on page 433 and in the
table foot note on page 434 it describes a hybrid exponential -
simple MA.
"Martin Pring On Market Momentum", appears to define by example a
simple moving total. In Tusshar Chande "The New Technical Trader",
RSI is covered in a number of sections. In one place it is based on
the sum of up days and down days, which should have a simple
averaging effect. But then he says "Wilder's method effectively uses
a 27 day exponential MA to smooth Su and Sd values before computing
RSI".
Chande's book sold me on the benefit of CMO over RSI. However, when
he defined a new hybrid momentum - stochastic indicator, he made it
STO-RSI rather than STO-CMO. Why?
Has anyone else out there dealt with the same questions?
Thanks, Barry Kaufman
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