The Stochastic RSI was created by Tushar Chande and Stanley Kroll in 1994 as a way to extract more sensitivity from RSI. Their problem: RSI rarely reaches its 70/30 extremes during ranging markets, missing reversal opportunities. Their solution: apply Stochastic math (where the value sits within its recent range) to RSI itself, producing an “oscillator of an oscillator” that swings much more dramatically.
The result is StochRSI – a faster, more sensitive version of RSI that frequently spikes between 0 and 100. It catches reversals that standard RSI misses, at the cost of more false signals. For short-timeframe scalping where RSI is too slow, StochRSI fills the gap.
What is the Stochastic RSI?
StochRSI applies the Stochastic Oscillator formula not to price but to RSI values. Specifically, it calculates where the current RSI value sits within the high-low range of RSI over the lookback period. The output is bounded 0-100, with 80 and 20 as the typical OB/OS thresholds.
The key difference vs standard RSI: where RSI rarely reaches 70/30 in ranging markets, StochRSI routinely hits 0 and 100. This sensitivity is the indicator’s main feature. Where RSI gives you a smooth momentum read, StochRSI gives you frequent reversal triggers.
The standard formula uses a 14-period RSI, then applies a 14-period Stochastic to that RSI, with 3-period smoothing on %K and %D lines (matching standard Stochastic settings).
How Stochastic RSI Works on MT4
StochRSI isn’t built into MT4. Install our custom version – see install custom indicators on MT4.
The indicator plots in a sub-window with two lines (%K and %D) bounded between 0 and 100. Three signals matter:
The K-D crossover at extremes. %K crossing above %D while in the OS zone (below 20) is a buy trigger; crossing below %D in the OB zone (above 80) is a sell trigger. This is the primary StochRSI signal.
The 0/100 reach. StochRSI hitting 0 or 100 indicates the RSI itself is at an extreme of its own range – a strong reversal warning.
Range pinning is the failure mode. In strong trends, StochRSI can stay near 80 throughout an uptrend or near 20 in a downtrend. Like Stochastic, it requires a trend filter to avoid counter-trend whipsaws.
Key Features
- Combines RSI momentum with Stochastic sensitivity
- Bounded 0-100 scale with frequent extremes
- Two-line readout (%K and %D) with crossover signals
- Non-repainting once candles close
- Configurable RSI period, Stochastic period, and smoothing
- Faster than standard RSI – more signals, more noise
Best Settings for Stochastic RSI
| Parameter | Default (Chande) | Scalping | Day/Swing |
|---|---|---|---|
| RSI Period | 14 | 9 | 14 |
| Stochastic Period | 14 | 9 | 14 |
| %K Smoothing | 3 | 3 | 3 |
| %D Smoothing | 3 | 3 | 3 |
| OB Level | 80 | 80 | 80 |
| OS Level | 20 | 20 | 20 |
Recommended starting point: Default 14-14-3-3 with 80/20 levels on H1, paired with a 50 EMA trend filter.
Pros and Cons
| Pros | Cons |
|---|---|
| Faster signals than standard RSI | Higher false-signal rate, requires trend filter |
| Frequently reaches 0/100 extremes (RSI rarely reaches 70/30 in ranges) | Can stay pinned in strong trends like Stochastic |
| Two-line readout offers crossover signals | Not built into MT4 – requires custom install |
| Effective for short-timeframe scalping where RSI is too slow | Less reliable than RSI for divergence detection |
How to Install Stochastic RSI on MT4
Step 1: Download Stoch_RSI.ex4 (link below).
Step 2: Drop into MQL4/Indicators via File > Open Data Folder.
Step 3: Refresh Navigator (Ctrl+N), drag Stoch_RSI onto your chart.
Step 4: Set RSI Period 14, Stochastic Period 14, K and D smoothing 3. Add 80/20 levels. Click OK.
Trading Strategy: StochRSI Cross with Trend Filter
Setup: StochRSI(14-14-3-3) with 80/20 levels. 50 EMA on price.
Buy Signal:
1. Price is above the 50 EMA (uptrend)
2. StochRSI %K dips below 20
3. %K crosses above %D while still below 20
4. Enter long when next candle closes higher
Sell Signal:
1. Price is below the 50 EMA (downtrend)
2. StochRSI %K rises above 80
3. %K crosses below %D while still above 80
4. Enter short on next candle close
Stop Loss: Beyond the recent swing extreme (15-30 pips on H1).
Take Profit: 1:2 R:R or trail by the 50 EMA.
The trend filter is non-negotiable with StochRSI. Without it the higher signal frequency means more counter-trend losses than wins.
StochRSI vs Standard RSI
| Feature | StochRSI | Standard RSI |
|---|---|---|
| Sensitivity | Very high | Moderate |
| Frequency of OB/OS readings | Frequent (hits 0/100 routinely) | Rare in ranges |
| False signal rate | Higher | Lower |
| Lines | Two (%K and %D) | One |
| Best for | Short-timeframe scalping, ranging markets | All conditions, divergence trading |
Verdict: StochRSI for fast scalping signals on M5/M15 where standard RSI is too slow. RSI for the cleaner reads on H1 and above. They serve different purposes; running both adds value if you trade multiple timeframes.
Frequently Asked Questions
Is Stochastic RSI free?
Yes. Custom version available below.
Does StochRSI repaint?
No. Locks in once the candle closes.
StochRSI vs Stochastic – what’s the difference?
Standard Stochastic measures where the close sits in the price’s high-low range. StochRSI measures where the RSI value sits in the RSI’s high-low range. StochRSI is more sensitive because RSI itself already smooths price.
Best timeframe for StochRSI?
M5 to H1 – that’s where its sensitivity adds value over standard RSI. On Daily charts the noise outweighs the speed advantage.
Can I use StochRSI on MT5?
Yes. Custom StochRSI works identically on both platforms.
Download Stochastic RSI Indicator for MT4 – Free
- Multi-timeframe display – H4 and D1 StochRSI on your H1 chart
- Crossover alerts – popup, email, push when %K crosses %D in OB or OS zones
- Customisable RSI and Stochastic periods
- Coloured fill – background highlights in OB/OS zones
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 17 KB
Version: 2.3
Last updated: April 2026
Download the Stochastic RSI Indicator – Free Instant Access
No payment. No catch. Enter your email below and the Stochastic RSI Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting Stochastic RSI Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping and day trading
- The exact crossover entry rules I use in live trading
- Weekly trading insights from a developer with 16+ years of market experience
Download the Stochastic RSI Indicator – Free Instant Access
No payment. No catch. Enter your email below and the Stochastic RSI Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting Stochastic RSI Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact entry and exit rules Dom uses in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.4/5
| Category | Rating |
|---|---|
| Accuracy | 4.2/5 |
| Ease of Use | 4.3/5 |
| Features | 4.5/5 |
| Value | 4.6/5 |
Related Indicators
- RSI Indicator MT4 – The smoother parent of StochRSI
- Stochastic Oscillator MT4 – Standard Stochastic on price (not RSI)
- Williams %R Indicator MT4 – Single-line range oscillator
- Best Oscillator Indicators for MT4
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