Engineering Alpha

Engineering Alpha

Reviving the Relative Strength Index

Enhance Your RSI Using a Dynamic Approach

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Jun 10, 2025
∙ Paid

In this article, we introduce a volatility-adjusted RSI that automatically tunes itself using a volatility metric such as the ATR. We'll explore the motivation behind this design, how it works under the hood, and how it can offer more reliable signals than its traditional counterpart—particularly in dynamic trading environments.

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