Stochastic RSI runs the Stochastic formula on the RSI series instead of price. The output is a 0-100 oscillator like Stochastic, but it reacts faster because the underlying RSI is already a momentum measure.
Formula
rsi = RSI(close, rsi_period)
stoch_rsi_k = SMA(stoch(rsi, stoch_period), k_smooth)
stoch_rsi_d = SMA(stoch_rsi_k, d_smooth)Params
- RSI period - RSI lookback. Default 14.
- Stochastic period - Stochastic lookback applied to RSI. Default 14.
- K smoothing - %K smoothing. Default 3.
- D smoothing - %D smoothing. Default 3.
Output
Two columns:
{name}_k- smoothed %K{name}_d- smoothed %D
Usage
- Faster entries than Stochastic on price - useful for scalping setups.
- Overbought / oversold with the same 80/20 thresholds.
- %K crossing %D as a momentum flip.
Pitfalls
Stochastic RSI is whippier than either component. False signals are common in chop. Use a trend or regime filter (ADX or Regime Filter) before trading the cross.