RSI and Double Smoothed Wilders EMA - MetaTrader 5 Script - MT4/MT5 Resources
In the original RSI calculation Welles Wilder used "Wilder EMA" (some explanation of it can be found here: Bi-smoothed Wilder EMA ). He never explained exactly why he was that EMA, but we can guess that he was trying to reduce the number of RSI signals (if he used "regular" EMA, the number of signals would increase significantly, since EMA makes the RSI more "tight"). This version is fixing that issue and implicitly fixing the RSI flattening issue (when the RSI stays flat for an extended period of time). Instead of using a "regular" Wilder EMA for calculations, this version uses a double-smoothed Wilder EMA, like this:
It can be used as any other RSI
The "big picture" example shows the difference between the regular RSI (gray line) and this RSI (colored line). It's clear that this version avoids too much "flattening" and the slope is still smoother than the original regular RSI
Attachment download
📎 rsi_2dsd.mq5 (11.48 KB)
Source: MQL5 #24119
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