This is a smoothed version of RSI indicator with an EMA of RSI for signal.
RSI works better for long-term overbought and oversold price levels, and it is great by determining the beginning and ending of bull/bear markets when the weekly RSI crosses one of its thresholds (40 and 60). Two modifications to help smooth the raw RSI signal: the input into the 16-week RSI (useful 16 to 24) is modified by taking the average of the high, low and close; the RSI value is also smoothed with a 3-period EMA.
RSI works better for long-term overbought and oversold price levels, and it is great by determining the beginning and ending of bull/bear markets when the weekly RSI crosses one of its thresholds (40 and 60). Two modifications to help smooth the raw RSI signal: the input into the 16-week RSI (useful 16 to 24) is modified by taking the average of the high, low and close; the RSI value is also smoothed with a 3-period EMA.