Abbreviation: RSI VolWgtAvg
Category: Price Momentum Indicators: Smoothed
Input Parameters:
| Name | Range | Default |
| Closing Price | Close | |
| RSI Periods | Int >= 1 | 5 |
| Volume | Volume | |
| VolWgtAvg Periods | Int >= 1 | 5 |
Calculation:
VolWgtAvg(X, Volume, VolWgtAvg Periods)
where
X = RSI(Closing Price, RSI Periods)
RSI represents Relative Strength Index (RSI)
VolWgtAvg represents Volume Weighted Moving Average
Discussion:
This indicator attempts to smooth the Relative Strength Index indicator by calculating its moving average. Since it uses a volume weighted moving average (which gives more importance to those periods with higher volume relative to the other periods in the moving average’s time frame), the smoothing is influenced more by periods of relatively higher volume than by periods of relatively lower volume.