Trading

📊 Understanding Stochastic RSI: A Powerful Momentum Indicator

Stochastic RSI (StochRSI) is a momentum indicator that applies the Stochastic Oscillator formula to the Relative Strength Index (RSI), enhancing sensitivity to price movements. It's a popular tool among traders for identifying overbought and oversold conditions.

⚙️ Formula:
StochRSI = (RSI - Lowest RSI) / (Highest RSI - Lowest RSI)

📌 Key Advantages:
✅ Higher Sensitivity: Reacts faster to price changes than standard RSI.
✅ Diverse Applications: Useful for spotting short-term trends and reversals.