STOCHASTIC BEARISH CROSSOVER FROM OVERBOUGHT ZONEStochastic has given a bearish crossover from the overbought zone. RSI has also given a bearish crossover of 9-day weighted moving average.
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Stochastic RSI vs RSIWhen it comes to momentum indicators on TradingView, both RSI and Stochastic RSI offer valuable insights but they operate differently and serve slightly different purposes.
What is RSI?
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price changes. It ranges from 0 to 100:
RSI above 70 suggests overbought conditions.
RSI below 30 indicates oversold conditions.
Often used for spotting reversals, momentum shifts, or trend strength.
What is Stochastic RSI?
The Stochastic RSI applies the stochastic formula to RSI values, not price directly. It’s essentially an indicator of an indicator:
It oscillates between 0 and 1 (or 0 to 100 when scaled).
Helps identify short-term overbought/oversold levels in RSI itself.
More sensitive and quicker to respond than traditional RSI.
Key Differences
Calculation: RSI uses price data directly; Stochastic RSI uses RSI values.
Speed: Stochastic RSI reacts faster, which can lead to earlier signals—but also more noise.
Use Case: RSI is better for identifying broader momentum; Stochastic RSI excels in short-term setups and fine-tuning entries.
When to Use Each
Use RSI when you want a stable, reliable view of momentum—especially for swing or position trading.
Use Stochastic RSI when you’re looking for short-term setups or want to confirm entries in choppy conditions.
Some traders use both together: RSI for the overall signal, and Stochastic RSI to time the entry more precisely.
Conclusion
There’s no “one-size-fits-all” answer—both RSI and Stochastic RSI have their strengths. The best choice depends on your trading style, timeframe, and risk appetite. Used together, they can offer both big-picture context and precise timing.
Stochastic shows a different picture...The Stochastic (which is marked with red line) and the price highs (which also are marked with red line) in such formation often gives an interesting outcome. Recent price high is much lower than the previous high but the Stochastic highs depict different picture. For the last price high it shows a lower high but the recent price lower high it shows a much higher condition (highly overbought). Usually this type of formation in Stochastic predicts a steep and sharp fall in the price. The same opposite condition indicates exactly an opposite outcome, i.e., price shoots up fast. So from the current scenario of Stochastic it might be assumed that Nifty is going to fall quite sharply in the upcoming sessions. At this time sub-14000 is quite possible.
Will nifty take support from current level ?Nifty may take support from current level,
because it is trading at confluence of:
1. support zone
2. Trendline support
3. oversold stochastic oscillator
we need evidence of demand to enter in long trade,
a bullish candle.
Note : only for learning, not a trading tip.
Short BataIndia Jan FuturesAfter a sustained uptrend BataIndia looks weak at top. Stock after touching 1163.65 (which is 100% Fibonacci extension from the SPL of 1075) looking set to reverse its trend. Its giving divergence as per stochastic and all set to test 1138/1126/1114/1097 levels on near to medium term. Today also stock tested 1138.7 which is its 38.2% Fibonacci retracement. Its good to short between 1153-1170 levels with a target of 1126/1114 with a stoploss of 1177 on closing basis. Its strongly advised to hedge the positions to reduce risk on your portfolio.
EUR/USD Technical analysisThe 4-hour chart of EUR/USD indicates that the pair is currently in downtrend.
The pair made a strong downside move and it is currently at support levels of 1.15108.
Also, stochastic indicator is showing a divergence , which indicates a subsidised momentum.
Hence we can expect the counter to be bullish until it reaches the target of 1.15553 .
Bpcl Defies All OddsAfter a bloodbath of a week, the markets are recovering and after a 15% fall, BPCl has taken support on its long term support with a high volume bullish candle
Moving average does not say much.
Stochastic RSI is also in the oversold region giving a long bias.
T1 Is the short term target
T2 is the Long term target
Stop loss below the support level.
Keep It Simple
Long: Stochastic Crossover in a non-trending securityFrom Swing Trading for Dummies using the following strategy
Identify whether a trading range exists by using ADX (preferably below 20)
Wait for %K to enter the overbought or oversold territory.
Buy the security when %K crosses up through %D and above the oversold zone.
Exit after stochastics reaches the opposite zone. Alternatively, you can exit after a return target is achieved or a certain number of days have passed.
BankNifty Bearish ViewBankNifty after a long rally from 24244 levels to 27754 looking week at higher levels. It has broken the trendline and showing bearish divergence/crossover as per stochastics and MACD on daily charts. Considering the risk reward ratio its a perfect juncture to remain on short side in BankNifty (sell on rise). Obviously hedge your positions to safeguard your portfolio. I would recommend to create a covered put which can be rolled up or averaged if it moves up higher which seems unlikely. Maximum banking heavyweights are trading near their highs and showing weakness too. Today BNF may see some retracement and technical pullback. Aggressive traders may employ the covered put if they see BNF at higher levels.
Nifty : Negative Divergence on StochasticNifty has been adhering to divergence formed in daily Stochastic from last couple of years. Negative divergence has emerged on stochastic on daily chart. Index witnessed correction from 11760 to 11552. We might see sideways to bearish move till the time high is not taken out on daily closing basis. Index is trading in upward moving channel. We would suggest to short Nifty below 11550 with stop loss above 11650 for target of 11300 and 11170.
Dr. Reddy’s Breakout + Bullish Stochastic + Volume Surge = ₹1307🔍 TECHNICAL HIGHLIGHTS:
📉 DESCENDING WEDGE BREAKOUT:
Price has decisively broken above the wedge resistance, signaling a trend reversal.
🚀 GAP-UP OPENING:
Signals aggressive buyer interest and bullish sentiment.
🔄 STOCHASTIC OSCILLATOR:
Fast %K line has crossed above the slow %D line in the oversold zone, indicating momentum is shifting to the upside.
🔊 VOLUME SURGE:
Heavy volume during breakout confirms strong buying pressure and likely institutional participation.
🎯 TRADE SETUP:
✅ PROFIT TARGET : ₹1307
❌ STOP LOSS: ₹1221
📌 CONCLUSION:
All indicators align for a potential bullish rally. With pattern confirmation, momentum support, and volume validation, this setup looks promising. Watch for follow-through price action and volume consistency.
XAUUSD SELL PROJECTION WITH RSI & STOCHASTIC STRATEGY Reason Behind XAUUSD Sell Projection
1. Stochastic Overbought above 80 and ready to make a Fall
2. RSI 14 Below 50 Which Makes the sell trend In 1h Timeframe
3. Market Clear ON Downtrend and Make the Sell Direction
Overall Outcomes
XAUUSD SELL @ 1920-23
SL 1927
TP 1910
Litecoin Will dropLitecoin will drops after 2 days because stochastic RSI shows that litecoin will drop
Go to short