# Stochastic RSI Stochastic RSI applies the stochastic formula to RSI values rather than price, expressing where RSI sits within its own recent range as an oscillator between 0 and 100 with K and D smoothing lines. Defaults are RSI length 14, stochastic length 14, K smoothing 3, and D smoothing 3. This is the standard implementation of the Chande and Kroll indicator with its usual defaults. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 13, 2020. - Access: free. - Concepts: [Stochastic RSI](https://www.luxalgo.com/library/concept/stochastic-rsi/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=nan03rj9ya0z3t4p2rritjb3 - Page: https://www.luxalgo.com/library/indicator/stochastic-rsi/ The **Stochastic RSI** applies the stochastic formula to RSI values rather than price, expressing where RSI sits within its own recent range as a 0 to 100 oscillator with %K and %D smoothing lines. Tushar Chande and Stanley Kroll designed it for the RSI that rides one half of its scale through a sustained move and stops tagging 70 or 30: each RSI value is measured against the window's highest and lowest RSI instead. This build is the standard implementation with the usual defaults: a 14-bar RSI, a 14-bar stochastic window, 3-bar smoothing for both %K and %D, and dashed levels at 80 and 20 with a shaded zone between them. ## How to Trade the Stochastic RSI? - **%K above 80**: extended momentum: persists in strong trends, precedes fades in ranges. - **%K below 20**: the momentum reset trend traders watch for re-entries. - **Bullish %K/%D cross**: the standard long trigger, most dependable from oversold with the prevailing trend. - **Bearish %K/%D cross**: the mirror trigger, strongest from overbought within a downtrend. Running on RSI output rather than raw price, the oscillator hits extremes far more often than RSI itself (the appeal for timing, the hazard standalone), so most filter it through a trend read or price structure. ## Stochastic RSI Settings - **RSI Source** (default close): the series the underlying RSI runs on. - **RSI Length** (default 14): the lookback of the Wilder RSI; shorter is twitchier raw material. - **Stochastic Length** (default 14): the window taking the highest and lowest RSI values; shorter tags them constantly. - **%K Smoothing** (default 3): the moving average of the stochastic of RSI, forming %K. - **%D Smoothing** (default 3): the moving average of %K, forming the signal line. - **Overbought Level** (default 80) and **Oversold Level** (default 20): the zone thresholds; some widen them given how readily the oscillator tags its boundaries. ## Frequently Asked Questions ### What is the difference between the Stochastic RSI and the regular Stochastic? The regular stochastic reads the close inside the recent price range; the Stochastic RSI reads RSI inside the recent RSI range. The result is deliberately fast, touching 0 or 100 whenever RSI makes a lookback extreme, jumpier than the price stochastic and quicker to reset. ### What alerts does the Stochastic RSI build include? Six alert conditions: bullish and bearish %K/%D crosses, %K crossing into and out of the overbought zone, and %K crossing into and out of the oversold zone. ### Which settings work best for the Stochastic RSI? The 14/14/3/3 defaults are the published convention. If the oscillator feels too frantic, lengthen the Stochastic Length or raise %K Smoothing rather than narrowing the levels; below the defaults, speed is paid for in false crosses. ## Related indicators - [RSI Divergence: Out-of-Sample Optimizer](https://www.luxalgo.com/library/indicator/rsi-divergence-out-of-sample-optimizer/) (RSI): markdown at https://www.luxalgo.com/library/indicator/rsi-divergence-out-of-sample-optimizer.md - [Ultimate RSI](https://www.luxalgo.com/library/indicator/ultimate-rsi/) (RSI): markdown at https://www.luxalgo.com/library/indicator/ultimate-rsi.md - [RSI Failure Swing](https://www.luxalgo.com/library/indicator/rsi-failure-swing/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/rsi-failure-swing.md - [RSI-2](https://www.luxalgo.com/library/indicator/rsi-2/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/rsi-2.md - [RSI Candlestick Oscillator](https://www.luxalgo.com/library/indicator/rsi-candlestick-oscillator/) (RSI): markdown at https://www.luxalgo.com/library/indicator/rsi-candlestick-oscillator.md - [RSI Multi Length](https://www.luxalgo.com/library/indicator/rsi-multi-length/) (RSI): markdown at https://www.luxalgo.com/library/indicator/rsi-multi-length.md - [RSI of Other Sources](https://www.luxalgo.com/library/indicator/rsi-of-other-sources/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/rsi-of-other-sources.md - [Adaptive Bounds RSI](https://www.luxalgo.com/library/indicator/adaptive-bounds-rsi/) (RSI): markdown at https://www.luxalgo.com/library/indicator/adaptive-bounds-rsi.md --- Source: https://www.luxalgo.com/library/indicator/stochastic-rsi/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/