What Is the Stochastic RSI?
The Stochastic RSI (StochRSI) is an indicator used in technical analysis that varies between zero and one (or zero and 100 on some charting platforms) and is shaped by applying the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than to typical price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold. To put it simply, Stochastics and RSI are based off of price, Stochastic RSI originates its values from the Relative Strength Index (RSI); it is essentially the Stochastic indicator applied to the RSI indicator. The StochRSI oscillator was developed to take benefit of both motion indicators in order to create a more delicate indicator that is tuned to a specific security's past performance rather than a comprehensive analysis of price change. The Formulas For the Stochastic RSI (StochRSI) are: StochRSI = RSI − min [ RSI ] ...