What is it?
StochRSI combines RSI and Stochastic to create a hyper-sensitive indicator that detects overbought/oversold conditions with greater precision, especially in volatile markets like crypto.

How is it used?

  • Overbought/oversold: Buy when StochRSI crosses above 20; sell when it crosses below 80.
  • Crossovers: StochRSI crossing above its signal line is bullish; crossing below is bearish.
  • Divergence: Divergence with price can signal reversals.

How is it calculated?

  • Calculate RSI (typically 14-period).
  • Apply the Stochastic formula to RSI:

StochRSI = [(Current RSI - Lowest RSI(n)) / (Highest RSI(n) - Lowest RSI(n))] × 100  

A 3-period SMA of StochRSI is often plotted as a signal line. Values above 80 are overbought; below 20 are oversold.

The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.