# What is the Stochastic RSI?

## (STOCH RSI) — Kolin Lukas

Definition

The Stochastic RSI indicator (Stoch RSI) is essentially an indicator of an indicator. It is used in technical analysis to provide a stochastic calculation to the RSI indicator.

This means that it is a measure of RSI relative to its own high/low range over a user defined period of time.

The Stochastic RSI is an oscillator that calculates a value between 0 and 1 which is then plotted as a line. This indicator is primarily used for identifying overbought and oversold conditions.

## History

The Stochastic RSI (Stoch RSI) indicator was developed by Tushard Chande and Stanley Kroll. They introduced their indicator in their 1994 book The New Technical Trader.

## Calculation

In this example, a very common 14 Period Stoch RSI is used.

Stoch RSI = (RSI — Lowest Low RSI) / (Highest High RSI — Lowest Low RSI)

## Here are some approximate benchmark levels:

- 14 Day Stoch RSI = 1 when RSI is at its highest level in 14 Days.
- 14 Day Stoch RSI = .8 when RSI is near the high of its…