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What is StochRSI Pro? â A better RSI and Stochastic indicator
Our StochRSI Pro oscillator is an enhanced version of StochRSI, which is an excellent combination of the original RSI and Stochastic indicators. It was developed to take advantage of both these famous momentum indicators to create a more sensitive oscillator.
What makes StochRSI Pro better?
Like a traditional Stochastic oscillator, StochRSI Pro alerts traders to the overbought and oversold areas. However, instead of taking price data as an input, StochRSI Pro uses the RSI value in its formula. Since RSI is a derivative of price, StochRSI is the 2nd derivative of price.
As the RSI now becomes the input value instead of the standard price data, traders can see that this oscillator travels quickly from overbought to oversold or vice versa - much more quickly than the traditional RSI and Stochastic indicators.
This also makes StochRSI Pro more effective for identifying momentum transitions and improving the timing of potential buy and sell signals.
How to use StochRSI Pro buy and sell signals effectively
One important note is that overbought and oversold signals are not direct buy or sell commands. Overbought doesn't directly tell that the price will fall, just as oversold doesn't guarantee the price will rally. Instead, the overbought and oversold conditions just alert traders that the RSI value is near the extremes of its scale, and then you can start looking for a retracement or reversal in price action.
If youâd like to explore other indicators built for NinjaTrader 8, you can view our full collection of NinjaTrader 8 indicators here.
Dedicated NinjaScript Signals
- Signal_State: 1 = overbought, -1 = oversold, 0 = middle
- Signal_Trade: 1 = %K cross above %D in oversold, -1 = %K cross below %D in overbought, 0 = no signal
Software Changelog
- 14 Aug 2024:The "Brush series exceeds the maximum number (65535) of unique brushes" error was fixed.
- 20 Jul 2023:The "Zone Enabled" feature was added; the logic was revised to run in multiple modes.
- 10 Jun 2023:The logic for calculating the Signal state was upgraded.
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