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Period 1: 5
Period 2: 5
Average Period: 3
Both stochastics and RSI are very popular indicators among traders and investors.
Stochastic RSI is a combination of these popular indicators. It uses stochastics calculations on RSI and plots it below the chart.
When the Stochastics RSI indicator is plotted, two lines appear below the chart.
1 – Green line is %K line
2 – The red linis the %D line
Stochastics RSI above 50 indicates a bullish trend, while below 50 indicates a bearish trend. When the stochastic RSI exceeds 80, it signals exhaustion in the uptrend. The stochastic RSI below 20 is considered to be an oversold area, which signal the exhaustion of the downtrend.
The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.
This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.
The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.