RSI on an EMA calculated basis

Wilder's RSI is calculated using a simple moving average (SMA) on the "average" gains/losses. Now I have noticed that some platforms use an exponential moving average (EMA) instead. In some cases, this can be advantageous.

I wonder, is there any faster way, to change the "parameters" of the built in RSI-function to EMA, or would I have to rewrite the code, as described here?

thank you

@TATrader I think it is worth your doing a little research. Learn about the indicators you want to use.

I have not read the book in a long time but I think I recall that Wilder's RSI is NOT calculated using a simple moving average. Wilder designed his RSI to work with the Wilder Smoothing (read New Concepts in Technical Trading Systems, his 1978 book). So now you need to learn what that is.

Then you could learn that it is essentially the same as an exponential moving average with an adjustment in the look back periods. Such that the equivalent ema is the same if you alter the look back periods -- multiply by two and then subtract 1.

So a 20 period Wilders smoothing moving average is the same as a 39 period ema.

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So a 20 period Wilders smoothing moving average is the same as a 39 period ema.

Thanks a lot - this shortcut helps (me) to get much clearer signals!

That is totally incorrect statement.

Wilders RSI is calculated using Wilders smoothing which is in the essence exponential moving average with 1/Period smoothing factor instead of 2/(Period+1)

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Thanks @Tomasz or the more detailed definition clearing my misconception of Wilder's RSI :slightly_smiling_face: Sometimes, a "small" detail can make a huge difference in terms of AFL results.


On Wilder's smoothing, this might help you further:

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