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Stochastic RSI

This meta indicator (an indicator of an indicator) created by Tushard Chande and Stanley Kroll is a combination of the Stochastic Oscillator and the Relative Strength Index. It uses the stochastics calculation on the RSI values, instead of the values of price.

Example

Interpretation

Because this is a meta indicator it is twice removed from price, which means it can have disconnects from the actual price movement.

Bullish Signals are given when:
The Stochastic RSI falls below the Oversold level of 20.
Only pay much attention to these signals if the currency is in an up trend.

Bearish Signals are given when:
The Stochastic RSI rises above the Overbought level of 80.
Only pay much attention to theses signals if the currency is in a down trend.

Calculation

(RSI - Lowest Low RSI) / (Highest High RSI - Lowest Low RSI)

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