"Learn Indicators Like a Pro" 16
🔄 Stochastic RSI — The Overbought/Oversold Sniper!
Need faster signals than RSI? Stochastic RSI tells you exactly when momentum is ready to flip.
👉 Spot perfect entries and exits inside tight ranges and volatile moves 🎯📈
Welcome to Episode 16 of:
"Learn Indicators Like a Pro" 🔍
Today’s topic: Stochastic RSI — The Sharper, Faster RSI You Didn’t Know You Needed
🔬 What is Stochastic RSI?
It’s RSI applied to RSI 🤯
Instead of tracking price directly, it tracks the momentum of RSI itself
It ranges between 0 and 100
Above 80 = Overbought
Below 20 = Oversold
✅ More sensitive than RSI
✅ Gives earlier signals
✅ Perfect for short-term trades or volatile assets
🚀 How to Use Stochastic RSI Like a Pro:
✅ 1. Classic Overbought/Oversold Strategy
When Stoch RSI drops below 20 and starts curving up → Potential buy
When it rises above 80 and starts curving down → Potential sell
💡 Combine with candle patterns or support/resistance for precision
✅ 2. Stoch RSI Crossovers
It has two lines: %K and %D
When %K crosses above %D → Bullish signal
When %K crosses below %D → Bearish signal
✅ 3. Divergences
Price goes higher, but Stoch RSI makes lower highs → Bearish divergence
Price goes lower, but Stoch RSI makes higher lows → Bullish divergence
🔥 Great tool to predict momentum reversal early
⚠️ Avoid These Mistakes:
❌ Taking trades just because it hits 80 or 20 — wait for confirmation
❌ Ignoring trend direction — Stoch RSI gives false signals in strong trends
❌ Using it alone — combine with trend, volume, or structure
📌 Next Episode: VWAP — The Institutional-Level Indicator for Real Trade Precision 🎯
Follow now and discover how pros use VWAP to snipe the best entries and exits with precision!