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Lesson 11 of 21 · 4 min read

Stochastic RSI: RSI on caffeine

StochRSI is the stochastic computed from RSI instead of the price. How it is computed, what the 14, 14, 3, 3 setting on Binance means and why it swings three times as much as RSI itself.

On this page

In this lesson

  • understand what the RSI of RSI is and how it is computed
  • decode the StochRSI setting 14, 14, 3, 3 on Binance
  • see why it gives far more signals than RSI – and why that is not a win

When RSI drinks two espressos, you get Stochastic RSI. It brings no new information about the market – it just takes RSI and shows where it sits within its own recent range. The result is fast, sensitive and restless. Professor Wick recommends reading it sitting down.

RSIRSIRSI after two espressos.
Stochastic RSI is the RSI of RSI – more sensitive, faster and very restless.

How it is computed#

StochRSI takes the RSI values and applies the stochastic oscillator's formula to them:

  1. Compute RSI (on Binance RSI 14).
  2. Find the lowest and highest RSI of the last 14 candles.
  3. Find where today's RSI sits in that range: (RSI − low) / (high − low) × 100.
  4. Smooth the result with an average of 3 candles – that is the %K line. An average of 3 %K values is the %D line.

An example: over the last 14 days RSI was at most 70 and at least 40. Today it is 64. StochRSI is (64 − 40) / (70 − 40) × 100 = 80. RSI 64 would excite nobody – StochRSI 80 already reports "top of the range".

Where to find it on Binance#

In Original mode: the indicator icon above the chart, the Sub Indicator tab, tick StochRSI, Save. The legend shows StochRSI(14, 14, 3, 3) – the RSI length, the stochastic length, the %K smoothing and the %D smoothing.

Video (21 s): switching on StochRSI on Binance – Sub Indicator, StochRSI 14, 14, 3, 3, Save (Binance, 9 Oct 2026).

Same market, three times the alarms#

Compare both panels on the same chart. RSI moves around the middle and rarely visits the 70/30 zones. StochRSI flies from zero to a hundred and back:

  • RSI 14 (panel below the chart, lines at 30 and 70)
  • StochRSI 14, 14, 3, 3 (panel below the chart: %K in blue, %D in yellow, lines at 20 and 80)
Top: RSI 14, bottom: StochRSI (%K blue, %D yellow). Over the same period RSI entered the 70/30 zones 13 times, %K the 80/20 zones 40 times.BTC/USDT · 1D · Data: Binance Vision · CC BY-NC-SA 4.0

Forty alarms a year are not forty opportunities. Most are just small wobbles of RSI that StochRSI blows up to the full scale. It is more useful as a quick timing gauge on short timeframes – and only where another tool already gives you a reason to trade.

Sensitive does not mean accurate

StochRSI amplifies noise. It reaches 80 or 20 on a quite ordinary day. Anyone who opens trades on it without another filter mostly pays fees and slippage.

Common myths#

  • "StochRSI is a better RSI." It is RSI stretched to the full scale – faster, not smarter.
  • "StochRSI 100 = the price is at the top." It only means RSI is at the high of the last 14 candles.
  • "When %K and %D cross, it is a signal." They cross so often that without context it is closer to a coin toss.

Summary

  • StochRSI = (RSI − lowest RSI) / (highest RSI − lowest RSI) × 100 over the last N candles.
  • On Binance StochRSI(14, 14, 3, 3): RSI length, stochastic length, %K and %D smoothing.
  • It swings far more than RSI and blows up small wobbles.
  • It is useful for timing at most, not as a reason to trade on its own.