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Indicators · Momentum

Stochastic RSI

The Stochastic RSI, introduced by Tushar Chande and Stanley Kroll, measures where the RSI stands within its own recent range. It is far more sensitive than the RSI: it reaches its extremes often, which makes it a timing tool for swings rather than a measure of trend strength.

What it's for
  • Time swings with a very sensitive momentum oscillator that often reaches its extremes.
  • Spot short-term overbought and oversold turns within the trend.
Plus and Pro toolTry it in Analyze
Pane
Separate, 0 to 100
Plan
Plus and Pro
Settings
RSI length, stochastic length, %K, %D
Default
14, 14, 3, 3 · levels 80 / 50 / 20

Calculation

StochRSI = 100 × (RSI − lowest RSI over 14) / (highest RSI over 14 − lowest RSI over 14)
%K = SMA(StochRSI, 3)
%D = SMA(%K, 3)

RSI is the 14-period Wilder RSI of the close, as in the RSI guide.

How to read it

Range-bound market where the Stochastic RSI goes below 20 at the lows and above 80 at the highs
In a range, %K drops below 20 near each low and rises above 80 near each high. %K crossing %D back out of those zones times the turns.
  • Below 20, %K crossing above %D: momentum turns up from an oversold zone.
  • Above 80, %K crossing below %D: momentum turns down from an overbought zone.
  • Use it in the direction of the higher-timeframe trend: oversold crosses in an uptrend are pullback entries.

Case study: pinned in a trend

Steady advance where the Stochastic RSI stays above 80 for long periods
In a steady advance the RSI keeps making new highs within its range, so the Stochastic RSI stays above 80 for many bars. Overbought here describes strength, not a top.

Limits

  • An oscillator of an oscillator: very sensitive and noisy, with many false signals on its own.
  • When the RSI is flat, its 14-bar range is tiny and the Stochastic RSI can swing from 0 to 100 on insignificant moves.

Charts in this guide use simulated prices generated for illustration; levels and outcomes shown are examples, not observations of a real market. Educational content only, not investment advice.

Related guides

RSI (Relative Strength Index)How the RSI is calculated with Wilder's smoothing, how to read 70/30, divergences and the RSI range shift in trends, and why overbought is not a sell signal.MACDHow the MACD line, signal line and histogram are calculated (12, 26, 9), how to read crossovers, the zero line, histogram slope and divergences.Bollinger BandsHow Bollinger Bands are calculated (SMA ± k standard deviations), how to read the squeeze, band walks and mean reversion, and common misreadings.
Stochastic RSI: calculation, %K and %D crosses, overbought and oversold | Oyticker