What Is Stochastic RSI (StochRSI)?
StochRSI applies the Stochastic oscillator formula to RSI values, producing a more sensitive momentum reading between 0 and 1.
Quick Answer
StochRSI applies the Stochastic oscillator formula to RSI values, producing a more sensitive momentum reading between 0 and 1.
What Does StochRSI Measure?
Stochastic RSI (StochRSI) was developed by Tushar Chande and Stanley Kroll. Instead of applying Stochastic to price directly, it measures where the current RSI sits relative to its high-low range over a lookback period. The result is a highly sensitive oscillator that can help identify short-term overbought and oversold conditions within the broader RSI framework. Because it moves quickly, StochRSI works best as a timing tool combined with trend filters. VaultCharts lets you add StochRSI to any desktop chart with adjustable RSI and smoothing periods.
StochRSI = (RSI - Lowest RSI) / (Highest RSI - Lowest RSI); %K and %D lines apply additional smoothingHow to Read StochRSI
- 1Values near 1.0 suggest RSI is at the top of its recent range (overbought)
- 2Values near 0 suggest RSI is at the bottom of its recent range (oversold)
- 3%K crossing above %D can signal bullish momentum
- 4%K crossing below %D can signal bearish momentum
How to Use StochRSI in Trading
StochRSI Settings
| Setting | Default | Description |
|---|---|---|
| RSI Period | 14 | Lookback period for underlying RSI calculation |
| Stochastic Period | 14 | Lookback for Stochastic applied to RSI |
| K Period | 3 | Smoothing period for %K line |
| D Period | 3 | Smoothing period for %D signal line |
Common Mistakes to Avoid
Use StochRSI in VaultCharts
VaultCharts includes Stochastic RSI with customizable settings. Combine it with our automated pattern detection and trade signals for better analysis.