Skip to content
All library documents

Stochastic RSI: Construction and Configurable Parameters

Article MQL5 code base
Read the original

Summary

The document introduces Stochastic RSI as an indicator developed by Tushar Chande and Stanley Kroll in 1994. It describes its aim as making RSI more sensitive by applying a stochastic calculation to RSI values. The listed settings cover the RSI lookback and applied price, the stochastic lookback, smoothing periods for the K and D lines, and overbought and oversold thresholds. The stated calculation smooths the stochastic RSI series into K and then smooths K into D.

The explanation gives a high-level construction, including that the maximum and minimum RSI values are measured over the stochastic period. However, the displayed calculation is incomplete: the conditional branch and the formula for the stochastic input are missing, and the fallback case is not fully explained. No entry rules, market examples, performance evidence, or guidance for choosing parameters are provided. Traders should therefore treat this as a partial indicator description, not as a validated signal system or complete implementation specification.

Key ideas

  • Stochastic RSI applies a stochastic calculation to RSI values to increase sensitivity.
  • Its settings include separate lookbacks for RSI and the stochastic calculation.
  • The K line is smoothed first, and the D line is then smoothed from K.
  • The document omits parts of the calculation and gives no strategy rules or performance evidence.

Tags

Technical indicatorsMomentum

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.