Stochastic RSI (StochRSI) is a technical analysis indicator used to support stock market prediction by comparing a security's price range and closing price.StochasticRSI(StochRSI)Atechnicalanalysisindicatorthatisusedtosupportstockmarketpredictionbycomparingasecurity’spricerangeandclosingpriceHome›Resources›Knowledge›Other›StochasticRSI(StochRSI)WhatisStochasticRSI(StochRSI)?ThestochasticRSI(StochRSI)isatechnicalindicatorusedtomeasurethestrengthandweaknessoftherelativestrengthindicator(RSI)RelativeStrengthIndex(RSI)TheRelativeStrengthIndex(RSI)isoneofthemostpopularandwidelyusedmomentumoscillators.Itwasoriginallydevelopedbythefamedmechanicalengineerturnedtechnicalanalyst,J.WellesWilder.TheRSImeasuresboththespeedandrateofchangeinpriceoverasetperiodoftime.StochRSIderivesitsvaluesfromtheRSI.Basically,astochasticoscillatorisappliedtoasetofRSIvalues;Hence,itisbasedonprice.Thestochasticformulaisusedtocomparethestock’sclosingpricetoitspricerangetopredictpriceturningpoints.Throughtheformula,traderscanidentifywhethertheRSIvaluesareoverboughtoroversold.TheStochRSIoscillatorcomprisesamoresensitiveindicatoradjustedtoaspecifichistoricalperformance,thankstoitsuseofbothmomentumindicatorsMomentumIndicatorsMomentumindicatorsaretoolsutilizedbytraderstogetabetterunderstandingofthespeedorrateatwhichthepriceofasecuritychanges.Momentum. SummaryStochasticRSI(StochRSI)isatechnicalanalysisindicatorusedtosupportstockmarketpredictionbycomparingasecurity’spricerangeandclosingprice.StochRSIfulfillsauniqueroleinthatitconcentratesonmarketmomentumandsucceedsatprovidingreadingsforoverboughtandoversoldmarketconditions.StochRSIisdifferentfromothertechnicalindicatorssuchastheRelativeStrengthIndex(RSI)inthatitmovesfasterfrompriceoverboughttooversoldthanRSI. UnderstandingStochasticRSITheStochRSIwasfirstdevelopedbytradingsystemwizardTusharChandeandmoneymanagementexpertStanleyKrollintheir1994book,“TheNewTechnicalTrader.”Theideawastoincreasesensitivitytogiverisetooverboughtandoversoldsignals.Accordingtothete