Relative Moving Average (14)
The Relative Moving Average (14) is a moving averages indicator used in Skyrexio Strategy Builder for trend following and dynamic support/resistance.
Introduction
Also known as SMMA (Smoothed Moving Average), uses a smoothing factor to reduce noise. Provides a balance between responsiveness and smoothness.
How Relative Moving Average (14) Works
The Relative Moving Average (RMA), also known as SMMA (Smoothed Moving Average), uses a smoothing factor to reduce market noise while maintaining trend sensitivity. Calculation: RMA = (Previous RMA × (n-1) + Current Price) / n. This creates a smoother line than EMA but more responsive than SMA.
In crypto strategy building, RMA is used for:
• Noise reduction - Filters out minor price fluctuations while preserving major trends • Long-term trend analysis - Excellent for identifying primary trends • RSI calculation - RSI uses RMA for its internal calculations • Support/Resistance - Provides stable dynamic levels
RMA is particularly useful in choppy markets where other MAs might give false signals. The smoothing effect makes it ideal for longer-term strategies.
Key Characteristics
Category: Moving Averages
Type: Technical Indicator
Application: Trend Following And Dynamic Support/Resistance
Timeframe: All timeframes supported (1m to 1M)
Using Relative Moving Average (14) in Skyrexio Strategy Builder
Base Order Entry Conditions
Example Configuration:
First Condition: Close Price
Timeframe: 1H
Operator: Cross Above
Second Condition: Relative Moving Average (14)This creates a signal based on the Relative Moving Average (14) meeting the specified criteria.
Practical Applications
Entry Signal
Relative Moving Average (14) meets threshold
Trending markets
Confirmation
Combine with volume
All conditions
Exit Signal
Relative Moving Average (14) reversal
Profit taking
Risk Management
Relative Moving Average (14) extreme values
Risk assessment
Advanced Applications
Multi-Timeframe Analysis
Combine different timeframes for robust signals:
Rule 1: Relative Moving Average (14) (4H) meets condition
AND
Rule 2: Relative Moving Average (14) (1H) confirms signalIndicator Combinations
Effective Combinations:
Relative Moving Average (14) + Volume indicators (confirmation)
Relative Moving Average (14) + Moving averages (trend context)
Relative Moving Average (14) + Other momentum indicators (signal validation)
Take Profit and Stop Loss Applications
Take Profit Strategies
Multiple Rules Example:
Rule 1: Exit condition - Price diverges from RMA smoothed trend
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: Relative Moving Average (14)
Value: 1.07
OR
Rule 2: Exit condition - Williams %R overbought signal
First Condition: Williams %R
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: -15
OR
Rule 3: Exit condition - Volume declining trend
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Value: 0.75Stop Loss Applications
Multiple Rules Example:
Rule 1: Stop loss - Price breaks RMA smoothed support
First Condition: Close Price
Timeframe: 1H
Operator: Cross Below
Second Condition: Relative Moving Average (14)
OR
Rule 2: Stop loss - Money Flow Index oversold
First Condition: Money Flow Index
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 18
OR
Rule 3: Stop loss - ATR expansion warning
First Condition: ATR
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 0.048Relative Moving Average (14) Strategy Bot
Configuration:
Base Order: Relative Moving Average (14) condition as defined above
Additional Entries: Price Change mode, 2% intervals
Take Profit: 5% and 10% levels
Stop Loss: Indicator reversal OR 3% loss
Risk Management
Position Sizing
Use Relative Moving Average (14) to assess market conditions:
Strong Signals: Full position size
Weak Signals: Reduced position size
Conflicting Signals: Avoid trading
Market Adaptation
Adjust Relative Moving Average (14) parameters based on:
Current market volatility
Timeframe being traded
Historical performance
Skyrexio-Specific Features
AI Integration
The "Suggest with AI" button provides recommendations for:
Optimal Relative Moving Average (14) parameters for current conditions
Best timeframes for Relative Moving Average (14) analysis
Complementary indicators to use with Relative Moving Average (14)
Real-Time Execution
Continuous Monitoring: 24/7 tracking across all timeframes
Instant Signals: Immediate order execution when conditions are met
Multi-Exchange: Consistent calculation across all supported exchanges
Best Practices
Entry Timing
Once per bar close: Recommended trigger type for Relative Moving Average (14)
Confirmation: Always combine with other technical factors
Volume: Validate signals with volume analysis
Common Mistakes to Avoid
Over-optimization: Don't curve-fit parameters to historical data
Isolation: Never use Relative Moving Average (14) as the only decision factor
Ignoring Context: Consider broader market conditions
Performance Optimization
Backtesting Guidelines
Test Relative Moving Average (14) across different market conditions
Validate on multiple cryptocurrency pairs
Account for transaction costs and slippage
Use realistic execution assumptions
Market Conditions
Trending
High
Follow signals with trend
Ranging
Medium
Use mean reversion approach
Volatile
Variable
Reduce position sizes
Low Volume
Low
Wait for volume confirmation
Technical Considerations
Calculation Method
Relative Moving Average (14) is calculated using:
Standard mathematical formulas
Consistent methodology across timeframes
Real-time updates with each new price tick
Parameter Optimization
Consider adjusting parameters for:
Different cryptocurrency pairs
Varying market conditions
Your risk tolerance and trading style
Conclusion
The Relative Moving Average (14) is a valuable tool in the Skyrexio Strategy Builder arsenal for trend following and dynamic support/resistance. When used correctly with proper risk management and confirmation signals, it can significantly enhance trading performance. However, like all technical indicators, Relative Moving Average (14) should be part of a comprehensive trading strategy that includes multiple confirmation factors.
The key to success with Relative Moving Average (14) is understanding its strengths and limitations, combining it with other analysis techniques, and maintaining disciplined risk management. Skyrexio's AI-powered suggestions can help optimize Relative Moving Average (14) parameters for current market conditions and your specific trading objectives.
Remember that no single indicator guarantees profitable trades. The most successful strategies combine multiple indicators, proper risk management, and sound trading psychology. Use Relative Moving Average (14) as part of a well-rounded approach to cryptocurrency trading.
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