48 Stochastic RSI

The Stochastic RSI (StochRSI) applies the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than to standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold.

Figure 8.65: Stochastic RSI formula

It is more sensitive to RSI but in principle functions the same indicating oversold and over bouth areas.

Figure 8.66: Stochastic RSI