RSI with one extra dial: a momentum period M that compares the close to M bars ago instead of yesterday. The longer reach smooths the line and measures the trend's drive, and its fading, more calmly.
The Relative Momentum Index (RMI) is an oscillator that Roger Altman built by extending the RSI.
The RSI measures gains and losses by comparing the close with the prior bar's close. The RMI adds one dial to that: a momentum period M. Instead of comparing with the prior bar, it compares the close with the close M bars ago.
That single change alters the line's character. By measuring against a reference set a little further back, the small day-to-day swings get averaged out, and the RMI becomes a smoother, steadier line than the RSI.
The guidelines of 70 for overbought and 30 for oversold are the same as RSI. But the larger M is, the smoother the line, and the more readily it pins high along a trend.
The aim of the RMI is to keep the essence of RSI's signals while calming the RSI's day-to-day jitter, making the direction of momentum and its fading easier to read.
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