> ## Documentation Index
> Fetch the complete documentation index at: https://learn.algopilot.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Stochastic Relative Strength Index (Stoch RSI)

**What is it?**\
StochRSI combines RSI and Stochastic to create a hyper-sensitive indicator that detects overbought/oversold conditions with greater precision, especially in volatile markets like crypto.

**How is it used?**

* **Overbought/oversold**: Buy when StochRSI crosses above 20; sell when it crosses below 80.
* **Crossovers**: StochRSI crossing above its signal line is bullish; crossing below is bearish.
* **Divergence**: Divergence with price can signal reversals.

**How is it calculated?**

* Calculate RSI (typically 14-period).
* Apply the Stochastic formula to RSI:

StochRSI = \[(Current RSI - Lowest RSI(n)) / (Highest RSI(n) - Lowest RSI(n))] × 100  

A 3-period SMA of StochRSI is often plotted as a signal line. Values above 80 are overbought; below 20 are oversold.

<sub>The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.</sub>