LEARN MODIFIED RSI BY JURIK INDEX IN 3 MINUTES ——BLOCKCHAIN 101

What Is Modified RSI by Jurik?

In one sentence: Modified RSI by Jurik = RSI + Jurik smoothing algorithm.

As mentioned in previous articles, RSI has many advanced variants. In addition to being a highly classic indicator that can be combined with numerous other technical indicators, traditional RSI also has very obvious problems:

• Excessive sensitivity to short-term price fluctuations

• Frequent false breakouts in ranging markets

• Repeated whipsaws in trending markets

What Jurik does is only one thing—but it is extremely critical: it applies deep smoothing to RSI using the nonlinear, adaptive JMA algorithm, rather than simple moving average smoothing.

Why Jurik RSI Is Different from Normal RSI

The key difference lies in the Jurik smoothing algorithm (JMA) at its core. Unlike the simple moving average (SMA) or exponential moving average (EMA) smoothing often used in some RSI variants, JMA is a nonlinear, adaptive smoothing technology. It does not apply a fixed smoothing parameter uniformly across all market conditions.

Instead, it dynamically adjusts its smoothing intensity based on the volatility and noise level of the price data itself.

During periods of high market volatility and severe price fluctuations, JMA automatically increases its smoothing strength to effectively filter out short-term, meaningless price “noise” that is unrelated to the main trend, thereby reducing false signals generated by traditional RSI due to excessive sensitivity.

Conversely, during relatively stable market phases with clear trends, JMA appropriately reduces the smoothing degree, ensuring that the indicator can still respond to genuine trend changes in a timely manner without introducing excessive lag—a common issue with fixed-parameter smoothing methods.

This adaptive and intelligent smoothing mechanism allows Jurik RSI to retain the original RSI’s ability to identify overbought and oversold conditions and capture trend momentum, while significantly improving overall stability and signal quality.

The indicator line appears much smoother, with fewer unnecessary oscillations and false crossovers, making it easier for traders to distinguish true trend direction and meaningful reversal points from market noise.

Simply put, traditional RSI smoothing methods are usually:

• SMA of RSI

• EMA of RSI

These approaches all introduce the same core problem: they are either slow, dull, or both.

Jurik smoothing, by contrast, has three core characteristics:

Adaptive

• High market volatility → smoothing automatically weakens

• Low market volatility → smoothing automatically strengthens

Nonlinear Filtering

• It does not average out key turning points, but instead prioritizes preserving trend changes

Ultra-Low Lag

• Compared to EMA-smoothed RSI, response speed is significantly faster

These characteristics effectively reduce lag and dullness. This is why Jurik RSI is often used by quantitative traders for:

• Trend confirmation

• Momentum filtering

• System-level signal conditions rather than standalone trade triggers

After combining RSI with Jurik smoothing, the result is:

• Preservation of RSI’s momentum logic

• Significant noise reduction

• Almost no additional lag

You can think of it as:

• “An RSI that behaves more like a trend indicator”

• “An RSI that does not jitter randomly”

How to Read Jurik RSI (Core Logic)

The value range of Jurik RSI remains 0–100, but its interpretation is more trend-oriented rather than focused on overbought and oversold conditions.

Signal 1: Above 50 = Bullish Regime

When JRSI operates stably above 50 and pulls back without breaking below 50, it indicates that medium-term bullish momentum remains intact. In this scenario, it is suitable for:

• Trend following

• Buying pullbacks

• Filtering out short signals

Signal 2: Below 50 = Bearish Regime

When JRSI stays suppressed below 50 for an extended period and rebounds fail, it indicates that bearish structure dominates. In this scenario, it is suitable for:

• Trend-based short strategies

• Avoiding long positions

• Assessing the nature of rebounds

Signal 3: Smooth Turning Points = High-Quality Reversal Clues

Unlike traditional RSI, Jurik RSI produces fewer but much cleaner turning points. Once direction changes, it is often not a “false move.”

When you observe that after a long period of one-sided movement, JRSI clearly turns and accelerates in the opposite direction, this usually means that the trend structure is undergoing a real change rather than short-term noise.

Best Use Case: Don’t Use It Alone

Jurik RSI is not suitable as a standalone buy/sell button. Its greatest value lies in filtering and confirmation.

Classic combinations include:

• Jurik RSI + trend moving averages (EMA / JMA)

• Jurik RSI + Donchian or channel breakouts

• Jurik RSI + volatility filters

Typical usage:

• Only execute long strategies when JRSI > 50

• Only execute short strategies when JRSI < 50

This approach alone can eliminate a large number of invalid trades.

Final Takeaway (3-Minute Summary)

Modified RSI by Jurik is a high-quality engineering upgrade of RSI. Its core value lies not in overbought or oversold signals, but in trend momentum identification. With extremely low noise and minimal lag, it is particularly suitable for quantitative and systematic trading.Its best role is as a trend filter, not an independent signal generator.

If you feel that RSI is “too noisy,” then Jurik RSI is very likely the answer you have been looking for.