📘 Crypto Indicators #59 — Stochastic RSI: Super momentum in its purest form
Have you felt that the RSI indicator is slow sometimes?
Stochastic RSI is the faster and more sensitive version — designed to catch reversals at lightning speed.
⚡ This hybrid indicator combines momentum strength and overbought/sold signals with high accuracy.
The result? A tool used by professionals to enter the market before the price actually moves.
🔍 What is the Stochastic RSI indicator?
It is simply: Applying the Stochastic equation to RSI values instead of price.
🧠 In other words:
RSI = measures price momentum
Stoch RSI = measures momentum within the RSI itself
🔁 This makes it more sensitive — and ideal for fast traders.
📊 How do we read the indicator?
Stoch RSI ranges between 0 and 1 (or between 0 and 100 depending on the settings).
Above 0.8 (or 80) → Overbought
Below 0.2 (or 20) → Oversold
Entry and exit signals depend on crossovers:
Bullish crossover above 0.2 → Buy signal
Bearish crossover below 0.8 → Sell signal
📌 Often used with trends or support/resistance areas.
⚙️ How do we use it in crypto?
✅ Early momentum shifts detection
✅ Improve entry and exit timing accurately
✅ Ideal for timeframes: 1H / 4H / Daily
✅ Integrates with RSI or MACD or EMA to strengthen decisions
✅ Detect divergences before they happen
📍 Is it available on the Binance platform?
Yes! You can activate it with these steps:
Open the chart for the desired currency
Click 'Indicators' from the top
Type 'Stochastic RSI' and select it
Default settings: 14, 14, 3, 3 — and you can adjust them according to your strategy
💡 Professional tips:
Very effective in ranging markets
Do not rely on it alone — ensure there is a clear trend
Watch for positive and negative divergences between price and the indicator
📈 Stochastic RSI = a faster, more predictive version of RSI.
If you are a fan of quick entries and smart exits — this indicator is your ally.
Next episode:
📊 'Ease of Movement' Indicator — a unique tool based on volume to illustrate how easy it is for the price to move. When the price rises sharply with weak volume… beware, a big opportunity is coming!
