📈 Stochastic RSI

The Stochastic RSI indicator is a momentum oscillator that applies the Stochastic formula to RSI values rather than price, making it a second-derivative indicator. It is particularly useful for identifying overbought and oversold conditions with higher sensitivity than the standard RSI.

🛠️ Parameters

RSI Period: The lookback period used to calculate the base RSI (default = 14)

Stochastic Period: The lookback period applied to RSI values to compute Stochastic RSI (default = 14)

%K Period: The smoothing period for the %K line (default = 3)

%D Period: The smoothing period for the %D line (default = 3)

MA Type: Moving average type for smoothing: Choice of 11 types (default = Simple)

📊 Output Lines

• %K Line: Smoothed Stochastic RSI (white)
• %D Line: Smoothed moving average of %K (lightblue)

Both lines oscillate between 0 and 100, allowing for clear overbought and oversold readings.

⚠️ Suggested Levels

Although the indicator does not display static levels by default, users are recommended to add these manually via the “Levels” tab in cTrader:

• Level 80 → Overbought
• Level 20 → Oversold

These levels work similarly to the traditional Stochastic Oscillator but applied to RSI behavior, making the signals sharper and often faster.

🧠 How to Use

• Overbought (>80): May indicate price is overextended to the upside — potential for reversal or consolidation.
• Oversold (<20): May signal price is oversold — possible bounce or trend reversal.
• %K and %D Crossovers: Can be used similarly to Stochastic or MACD — a bullish crossover below 20 or bearish crossover above 80 may be actionable.

🏷️ Notes

• Built for cTrader using C# and the Automate API
• Clean, efficient, and customizable with 11 MA types
• Code and logic by BlueRocketBots & ChatGPT (OpenAI)
• Clean code (total 99 lines; 54 lines code, 27 lines text, 18 lines empty)
• V2 improved version
• For free!