Momentum oscillators
Stochastic RSI
Stoch RSI applies the Stochastic formula to RSI values, making a faster 0-100 oscillator.
How to read it
- Above 80 overbought, below 20 oversold.
- %K / %D crosses give quick timing signals.
- Very sensitive: best used with a trend filter.
Settings
Default 14, 14, 3, 3.
Example rule to test
Rule to test: in an uptrend, buy when Stoch RSI %K crosses above %D below 20.
Common mistake
Treating every extreme reading as a reversal.
Try it free on iTradeChart
For learning only. Backtests use past data and do not guarantee future results. Not investment advice.