Moving Average RSI

Moving Average RSI

What is the Moving Average Relative Strength Index?

Moving Average Relative Strength indicator is also defined as the MARSI indicator or Moving Average RSI. This indicator can get a nice smooth RSI line by returning the RSI of a moving average. This line is helpful to traders in determining good entry points in the markets.

You can interpret the MARSI indicator just like RSI. The parameters are quite similar. If the stock price closes above 70, it indicates that the market has become overbought. Whereas if the stock price closes below 30 it indicates that the market has become oversold.

Contrarian traders take the help of the MARSI Indicator to gain profits. They buy the stock when the market becomes overbought. And sell the stock when the market becomes oversold. 

The MARSI indicator has two main parameters, i.e. the moving average period and the RSI period. The default value of the moving average period is 13 and the default value for the RSI period is 14.

Example:-

Rule1 = cross (MARSI (13, 14), 70);

Rule 1 returns a trading signal if the MARSI indicator goes above 70. This means that it returns a signal if the 14-Bar RSI of the 13- Bar a moving average of the closing price crosses above 70.


    • Related Articles

    • Volume Moving Average

      What is Volume Moving Average (VMA)? Volume Moving Average is very similar to a simple moving average. But it is determined using volume data rather than price data. Volume moving averages help you to understand the general trends and volume patterns ...
    • Weighted Moving Average

      Weighted Moving Average (WMA) is one of the most popular indicators. This is due to the simple formula and its ability to measure market momentum. Weighted Moving Average is more descriptive and ultimately more detailed and follows the price more ...
    • Triangular Moving Average

      The Triangular Moving Average is a technical indicator similar to other moving averages. It is a simple MA that has been averaged again, creating an extra smooth moving average line. This indicator shows the average price of an asset over a specified ...
    • Moving Average (MA)

      A moving average is a stock indicator that traders use to identify a stock’s trend direction. Besides that, it also helps determine the resistance and support levels of financial security. A declining MA indicates a downtrend. Conversely, a rising MA ...
    • Triple Exponential Moving Average

      The Triple Exponential Moving Average was originally designed to smooth price fluctuations. Thus, it makes identifying trends easier for traders without the lag associated with traditional moving averages. Traders look at this trend indicator as a ...