RSX measures the direction of a trend and its efficiency, or strength. Used as is, without any extra analysis, RSX synchronizes well with daily bars of a market. (For faster time frames, we recommend using RSX in a more sophisticated manner, such as RSX_on_RSX and RSX_double.)

The chart shows trades triggered by the simple rule: go long if RSX is rising and short if RSX is falling. Because the trades in this example are triggered by changes in the direction of RSX, ulta-smooth lines are vital to its success. In contrast, a jittery RSI signal would trigger excessive trades, rapidly depleting your funds.

• Different time frames on a chart may produce different results.

• Please do not ask us for indicator parameter settings. Every market is different.

• Past performance of any trading system is never a guarantee of future performance.

• All trading strategies have risk and commodities/futures trading leverages that risk.