Jurik RSX

One of the indicators that I got into a while back after reading Larry Williams Batting .800 was RSI. It is called the Relative Strength Index, and it is an excellent indicator of strength. He has a version called %R that works very well that is measured a bit differently.

Jurik Research (http://www.jurikres.com/) has an excellent version of these types of indicators called RSX. When I was trading forex for a while at night, I used RSX in combination with the JMA, and it helped a lot with with upswings and downswings. The problem with RSI and %R is that they are very jittery and prone to false signals. RSX seemed to be less prone to false signals, and helped out a lot.

One of the experiments that I did because I was tired of trying of re-installing the Jurik Indicators each time I upgraded computers, and because I wanted to try to use indicators with my own custom trading software was trying to reproduce this type of indicator on my own. One of the things that I tried first was a truncated FFT, essentially using a lowpass filter. Woila! Instant success. While not exactly the same as the JMA or RSX, it produced results close enough to use for trading.