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Stochastic RSI (StochRSI)

What is Stochastic RSI?​

Stochastic RSI (StochRSI) is an oscillator that applies the Stochastic formula to the Relative Strength Index (RSI) values instead of price data.
It ranges between 0 and 1 (or 0% to 100%) and helps traders identify overbought or oversold conditions more precisely than a standard RSI.

Key Points:​

  • Combines momentum (RSI) with stochastic measurements (K & D periods).
  • Typically includes %K and %D lines to generate crossover signals.

How to Add a Stochastic RSI Indicator?​

  1. Go to Indicators → "+" button.
  2. Select Stochastic RSI (StochRSI).
  3. Choose your data (candles or another data source).
  4. Set Time Frame, Length, RSI Length, K Period, D Period, Offset, Mode, and Source.
  5. Click "Add" to add the indicator to your strategy.

Configurable Parameters in StochRSI​

1. On Data​

  • Select which price data or indicator values you want to measure with StochRSI.

2. Time Frame​

  • Defines the candle interval. For example, 5 = 5-minute candles.

3. Length​

  • The Stochastic oscillator length; determines how many periods are used to find the %K line.

4. RSI Length​

  • The number of periods for calculating RSI before applying the stochastic formula.

5. K Period​

  • Determines the smoothing for the stochastic %K line.

6. D Period​

  • Determines the smoothing for the stochastic %D line (a moving average of %K).

7. Offset​

  • Shifts the entire indicator forward (positive) or backward (negative) in time.

8. Mode​

  • Specifies which moving average type (e.g., SMA, EMA) to use when calculating the internal smoothing.

9. Source​

  • The data column used in RSI calculations:
    • Close (default)
    • Open
    • High
    • Low
    • etc.

Element Name​

  • Default label is _stoch_rsi_14 (or similar based on your inputs).
  • You can rename this indicator for clarity, especially if using multiple StochRSIs.

Use Cases for StochRSI​

  • Overbought/Oversold Detection
    → Look for values above 0.8 or below 0.2.
  • Divergence Signals
    → Compare StochRSI direction with price action.
  • Trend Confirmation
    → Combine StochRSI crossovers with other trend indicators (e.g., Moving Average).

Next Steps​

✅ Experiment with different K & D Periods
✅ Combine StochRSI signals with trend indicators (e.g., MACD, Bollinger Bands)
✅ Configure your Length and RSI Length to suit your trading style