The Stoch RSI (Stochastic RSI) is a technical indicator that combines the concept of the stochastic oscillator and that of the RSI (Relative Strength Index). Rather than applying the stochastic formula directly to the price, it is applied here to the RSI values.

The Stoch RSI generally oscillates between 0 and 1 (or sometimes expressed as a percentage from 0 to 100). The closer it is to 1, the more we think that the asset is in the overbought zone, and conversely, the closer it is to 0, the more the asset is in the oversold zone.

Its calculation is based on the position of the current RSI in relation to its high and low range over a specific period (often 14 periods).

- When the Stoch RSI is greater than 0.80, we speak of an overbought zone.

- When it is less than 0.20, we speak of an oversold zone.

Crossover signals are also taken into account. We observe the moment when the Stoch RSI curve crosses above or below certain limits (for example 0.20 or 0.80) to detect changes in momentum. Divergences between the Stoch RSI and the price can also warn of a possible reversal.

Like any indicator, it is recommended to use the Stoch RSI with other tools (moving averages, supports and resistances, volume analysis, etc.) to obtain a more precise view of the trend and confirm trading signals.