Description
The Stochastic RSI technical indicator applies Stochastic Oscillator to values of the Relative Strength Index (RSI). The indicator thus produces two main plots FullK and FullD oscillating between oversold and overbought levels. This combination of indicators produces signals that tend to be more precise than those given by the RSI.
The interpretation of the indicator is similar to the original RSI's: valuable signals are often produced at crossovers of the main plot with overbought and oversold levels. However, the default values of these levels are slightly different: in the stochastic version, these are at 80 and 20, respectively. Actual indication of the crossovers can be enabled by adjusting the show breakout signals parameter value.
Input Parameters
| Parameter | Description |
|---|---|
rsi length
|
The number of bars with which the RSI is calculated. |
over bought
|
The overbought level value. |
over sold
|
The oversold level value. |
|
|
The type of moving average to be used in the calculation of the RSI: simple, exponential, weighted, Wilder's, or Hull. |
rsi price
|
The type of price with which the RSI is calculated. |
k period
|
The period on which the highest and the lowest price values are to be found. |
d period
|
The length of the moving average to be applied to FullK. This produces the FullD plot. |
slowing period
|
The length of the moving average to be applied to %K. This produces the FullK plot. |
|
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
show breakout signals
|
Controls indication of Stochastic RSI crossovers above and below the overbought/oversold levels. Specify for which of the main plots the crossovers are to be indicated. |
Plots
| Plot | Description |
|---|---|
FullK
|
FullK value, 'slowing period' moving average of %K. |
FullD
|
FullD value, 'd period' moving average of FullK. |
OverBought
|
The overbought level. |
OverSold
|
The oversold level. |
UpSignal
|
If enabled, displays an up arrow every time the specified main plot crosses above the oversold level. |
DownSignal
|
If enabled, displays a down arrow every time the specified main plot crosses below the overbought level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.