Sounds like you need a low pass filter to smooth out those wild swings, can't see what a diode would be good for here.
Something like this:
The polarity depends which way around you have the wires, so if you can measure with a voltmeter the positive side, that is where the + of the cap and the series resistor goes.
You can also get a ceramic cap 1µF (or more parallel if it is still to wild) then the polarity doesn't matter.
... and as always DO AT YOUR OWN RISK !
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