# Cutler's RSI Professional

## 1. Summary (Introduction)

Cutler's RSI is a variation of the classic Relative Strength Index (RSI). While the standard RSI uses Wilder's smoothing (an RMA/SMMA), Cutler's version uses a **Simple Moving Average (SMA)** to average the positive and negative price changes.

Our professional toolkit provides a unified implementation of this indicator family:

- **`CutlerRSI_Pro.mq5`**: Plots the main Cutler's RSI line and an **optional, configurable moving average signal line**.
- **`CutlerRSI_Oscillator_Pro.mq5`**: Displays the difference between the RSI and its signal line as a histogram.

Both indicators can be calculated using either **standard** or **Heikin Ashi** price data.

## 2. Mathematical Foundations and Calculation Logic

The core difference lies in the smoothing method applied to the price changes.

### Calculation Steps (Algorithm)

1. **Calculate Price Changes:** $\text{Change}_i = P_i - P_{i-1}$
2. **Separate Positive and Negative Changes.**
3. **Calculate the Simple Moving Average of Changes:**
    $\text{Avg Positive}_i = \text{SMA}(\text{Positive Change}, N)_i$
    $\text{Avg Negative}_i = \text{SMA}(\text{Negative Change}, N)_i$
4. **Calculate the Relative Strength (RS) and Final RSI:**
    $\text{RS}_i = \frac{\text{Avg Positive}_i}{\text{Avg Negative}_i}$
    $\text{Cutler's RSI}_i = 100 - \frac{100}{1 + \text{RS}_i}$
5. **Calculate the Signal Line & Oscillator:** The signal line is a moving average of the Cutler's RSI line, and the oscillator is the difference between the two.

## 3. MQL5 Implementation Details

Our MQL5 implementation follows a highly modular, object-oriented design.

- **Unified Calculation Engine (`CutlerRSI_Calculator.mqh`):**
    The core logic is encapsulated in a robust engine.
  - **Composition:** The calculator internally uses our universal `MovingAverage_Engine.mqh` to handle the smoothing of the Signal Line. This allows for advanced smoothing types (like DEMA or TEMA) beyond the standard SMA.
  - **Reusability:** The `CutlerRSI_Oscillator_Pro` calculator uses composition to include the main `CCutlerRSICalculator`, ensuring that both indicators share the exact same mathematical foundation.

- **Optimized Incremental Calculation (O(1)):**
    Unlike basic implementations that recalculate the entire history on every tick, this indicator employs an intelligent incremental algorithm.
  - **State Tracking:** It utilizes `prev_calculated` to process only new bars.
  - **Persistent Buffers:** Internal buffers persist their state between ticks.

- **Selectable Display Mode:** The `CutlerRSI_Pro` indicator includes a `Display Mode` input that allows the user to show either the RSI line by itself or the RSI line together with its moving average signal line.

## 4. Parameters

- **RSI Period (`InpPeriodRSI`):** The lookback period for the SMA of price changes. (Default: `14`).
- **Applied Price (`InpSourcePrice`):** The source price for the calculation. (Standard or Heikin Ashi).
- **Signal Line Settings:**
  - `InpDisplayMode`: Toggles the visibility of the signal line.
  - `InpPeriodMA`: The lookback period for the signal line.
  - `InpMethodMA`: The type of moving average for the signal line. Supports: **SMA, EMA, SMMA, LWMA, TMA, DEMA, TEMA**.

## 5. Usage and Interpretation

The interpretation of Cutler's RSI is identical to the standard RSI.

- **Overbought/Oversold Levels:** Identify overbought (typically above 70) and oversold (typically below 30) conditions.
- **Crossovers:**
  - **Signal Line Crossover:** When the Cutler's RSI line crosses above its moving average, it can be seen as a bullish signal.
  - **Centerline Crossover:** A crossover of the RSI line above the 50 level indicates bullish momentum.
- **Divergence:** Look for divergences between the RSI and the price action.
- **Oscillator (Histogram):** The histogram provides a clear visual of the relationship between the Cutler's RSI and its signal line.