Stochastic RSI (Stoch RSI)
Stochastic RSI (StochRSI) is an oscillator that works exactly like the standard Stochastic, but is calculated using RSI values instead of closing prices.
This makes it more sensitive to momentum shifts, allowing it to catch reversal signals earlier.
The indicator consists of the same two lines as the Stochastic:
- %K (Fast line) — the current RSI position relative to its range over the selected period.
- %D (Slow line) — a moving average of %K that smooths out fluctuations.
StochRSI Filters in Veles
Section titled “StochRSI Filters in Veles”StochRSI provides the same two filter types as the Stochastic:
1. Line Crossover
Section titled “1. Line Crossover”- K crosses D from above → sell signal (open short or close long).
- K crosses D from below → buy signal (open long or close short).
2. Overbought and Oversold Levels
Section titled “2. Overbought and Oversold Levels”- Both lines drop below 20 and K crosses back above 20 → buy signal (long).
- Both lines rise above 80 and K crosses back below 80 → sell signal (short).
Limitations
Section titled “Limitations”- StochRSI is more sensitive than the standard Stochastic — it generates more signals, including false ones.
- During strong trends, it may remain in overbought or oversold territory for extended periods.
- Works best in ranging markets and when combined with a trend filter.
⚠ Before using the indicator, it is recommended to test your settings in backtests and ensure the strategy fits your trading style.
Summary
Section titled “Summary”StochRSI is a Stochastic built on top of RSI. Signal types and levels are the same: line crossovers and 20/80 zones. Because it works with RSI values, it reacts to momentum changes faster than the standard Stochastic — but still requires confirmation from a second indicator.