The Stochastic RSI Crossover Indicator

3 min

Aug 31, 2024

Indicators

The Stochastic RSI Crossover Indicator

The Stochastic RSI Crossover Indicator

The Stochastic RSI indicator is extremely similar to the RSI indicator. It also indicates overbought and oversold zones. However, instead of focusing on a single RSI value, it relates the current RSI value to the minimum and maximum RSI values over a certain period. The purpose of this indicator is to compare the evolution of two stochastic RSIs, primarily over different periods.

Lucas Inglese

Lucas Inglese

Trading Instructor

The Stochastic RSI Crossover Block Configuration

On BullTrading, you have several options to configure each block uniquely. In this block, you can set the time unit, periods used, and more.

Time Unit

Since BullTrading allows for multi-timeframe strategies, you can select the time period for calculating this indicator. There are two options:

  • Default: If set to Default, the time unit will vary based on the timeframe used in the backtest.

  • 15m, 30m, 1d, etc.: Choosing a specific time unit means this setting will apply regardless of the time unit used for backtesting your strategy.

TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.

Slow & Fast Period RSI

As with most indicators, you need a period to calculate the RSI indicators. Therefore, you will specify two periods here: one for each RSI.

Slow & Fast Period Sto

Once the RSI is calculated, you need to calculate the stochastic RSI, which also requires a period for its calculation. You will need two periods here as well: one for each stochastic RSI.

Slow & Fast Period Smooth

After calculating the stochastic RSIs, you can apply smoothing using moving averages. Therefore, it’s necessary to choose the periods used for the various smoothings.

Signal Type

This parameter has two options: CrossOver and Position. Here’s the difference:

  • CrossOver: If you select CrossOver as the signal type, this block will validate only when the Fast RSI Sto line crosses above or below the Slow RSI Sto line.

  • Position: With this option, the block is validated as long as you are in the selected Trigger Type (Bearish or Bullish).

TIPS: The CrossOver parameter is more restrictive, making it useful when combining only one or two indicators. However, using too many blocks with CrossOver will significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover at the RSI 70 threshold + a crossover in the Vortex indicator.

So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.

Trigger Type

This parameter has two options: Bullish or Bearish. Here’s the difference:

  • Bullish: If the trigger type is set to Bullish, the block is validated if the Fast RSI Sto line is above the Slow RSI Sto line.

  • Bearish: If the trigger type is set to Bearish, the block is validated if the Fast RSI Sto line is below the Slow RSI Sto line.

The Stochastic RSI Crossover Block Configuration

On BullTrading, you have several options to configure each block uniquely. In this block, you can set the time unit, periods used, and more.

Time Unit

Since BullTrading allows for multi-timeframe strategies, you can select the time period for calculating this indicator. There are two options:

  • Default: If set to Default, the time unit will vary based on the timeframe used in the backtest.

  • 15m, 30m, 1d, etc.: Choosing a specific time unit means this setting will apply regardless of the time unit used for backtesting your strategy.

TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.

Slow & Fast Period RSI

As with most indicators, you need a period to calculate the RSI indicators. Therefore, you will specify two periods here: one for each RSI.

Slow & Fast Period Sto

Once the RSI is calculated, you need to calculate the stochastic RSI, which also requires a period for its calculation. You will need two periods here as well: one for each stochastic RSI.

Slow & Fast Period Smooth

After calculating the stochastic RSIs, you can apply smoothing using moving averages. Therefore, it’s necessary to choose the periods used for the various smoothings.

Signal Type

This parameter has two options: CrossOver and Position. Here’s the difference:

  • CrossOver: If you select CrossOver as the signal type, this block will validate only when the Fast RSI Sto line crosses above or below the Slow RSI Sto line.

  • Position: With this option, the block is validated as long as you are in the selected Trigger Type (Bearish or Bullish).

TIPS: The CrossOver parameter is more restrictive, making it useful when combining only one or two indicators. However, using too many blocks with CrossOver will significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover at the RSI 70 threshold + a crossover in the Vortex indicator.

So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.

Trigger Type

This parameter has two options: Bullish or Bearish. Here’s the difference:

  • Bullish: If the trigger type is set to Bullish, the block is validated if the Fast RSI Sto line is above the Slow RSI Sto line.

  • Bearish: If the trigger type is set to Bearish, the block is validated if the Fast RSI Sto line is below the Slow RSI Sto line.

The Stochastic RSI Crossover Block Configuration

On BullTrading, you have several options to configure each block uniquely. In this block, you can set the time unit, periods used, and more.

Time Unit

Since BullTrading allows for multi-timeframe strategies, you can select the time period for calculating this indicator. There are two options:

  • Default: If set to Default, the time unit will vary based on the timeframe used in the backtest.

  • 15m, 30m, 1d, etc.: Choosing a specific time unit means this setting will apply regardless of the time unit used for backtesting your strategy.

TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.

Slow & Fast Period RSI

As with most indicators, you need a period to calculate the RSI indicators. Therefore, you will specify two periods here: one for each RSI.

Slow & Fast Period Sto

Once the RSI is calculated, you need to calculate the stochastic RSI, which also requires a period for its calculation. You will need two periods here as well: one for each stochastic RSI.

Slow & Fast Period Smooth

After calculating the stochastic RSIs, you can apply smoothing using moving averages. Therefore, it’s necessary to choose the periods used for the various smoothings.

Signal Type

This parameter has two options: CrossOver and Position. Here’s the difference:

  • CrossOver: If you select CrossOver as the signal type, this block will validate only when the Fast RSI Sto line crosses above or below the Slow RSI Sto line.

  • Position: With this option, the block is validated as long as you are in the selected Trigger Type (Bearish or Bullish).

TIPS: The CrossOver parameter is more restrictive, making it useful when combining only one or two indicators. However, using too many blocks with CrossOver will significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover at the RSI 70 threshold + a crossover in the Vortex indicator.

So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.

Trigger Type

This parameter has two options: Bullish or Bearish. Here’s the difference:

  • Bullish: If the trigger type is set to Bullish, the block is validated if the Fast RSI Sto line is above the Slow RSI Sto line.

  • Bearish: If the trigger type is set to Bearish, the block is validated if the Fast RSI Sto line is below the Slow RSI Sto line.

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