RSI + Stoch RSI TOGETHER

The RSI + Stoch RSI TOGETHER indicator combines the Relative Strength Index (RSI) and the Stochastic RSI into a single pane to help traders identify overbought and oversold conditions across all financial markets.

Usage

The Usage section focuses on identifying momentum shifts and potential exhaustion points by observing the confluence between the two oscillators.

• Overbought/Oversold Identification: Traders look for the RSI to exceed the 70 level (overbought) or drop below the 30 level (oversold). Simultaneously, the Stochastic RSI (%K and %D lines) can be used to spot more sensitive turning points within those broader trends.
• Crossovers: A common strategy involves watching for the %K line (green) to cross above the %D line (red) while in an oversold region to signal a potential bullish reversal, or crossing below while overbought to signal a bearish reversal.
• Confluence: By having both indicators together, users can filter signals; for example, taking a Stochastic RSI crossover only when the standard RSI confirms a specific trend direction or level.

Details

This tool calculates the standard RSI using a Relative Moving Average (RMA) of price changes. The Stochastic RSI component is derived by applying the Stochastic formula to the RSI values rather than price, which increases the sensitivity of the oscillator. This implementation includes smoothing parameters for the Stochastic %K and %D lines to reduce market noise and provide clearer visual signals.

Settings

• Length: Sets the period for the standard RSI calculation.
• Smooth K: Determines the smoothing period for the Stochastic %K line.
• Smooth D: Determines the moving average period for the Stochastic %D line.
• Stoch RSI Length: The lookback period used to calculate the RSI values that feed into the Stochastic formula.
• Stoch Length: The lookback period for the Stochastic calculation itself.
• RSI Source: Selects the price data (e.g., Close, Open, High, Low) used as the input for the calculations.

FAQ

How do I use the alerts in this indicator?

The indicator includes built-in alerts for Stochastic RSI crossovers and standard RSI level crosses. You can configure these by clicking the "Alerts" icon in TradingView and selecting this script as the condition.

Can I change the overbought and oversold levels?

While the levels are visually set at 70/30 for RSI and 80/20 for Stoch RSI, you can monitor the values and adjust your strategy based on different horizontal thresholds.

How do I access RSI + Stoch RSI TOGETHER?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.