Stoch RSI

The StochRSI indicator was developped because the regular RSI would not always produce enough signals. Because when the RSI is betweer 30 and 70, there are no buy or sell signals and the price could alternate between the two for a long time. The Stoch RSI uses the Stochastic method and applies it to RSI instead of the actual price, thus making it an indicator of an indicator. The Stoch RSI has a value between 0 and 1 and you could use the same logic for reading the chart as you would for RSI. Is the level below 0.20 then it is considered to be oversold and that means a buy signal. When the value is above 0.80 it is considered to be overbought and that means a sell signal. The Stoch RSI is more sensative than the regular RSI and because of that it produces a lot more sigals.

The example below shows a Stoch RSI chart with the oversold conditions marked:

How to use Stoch RSI in Gunbot

You can use this indicator as a confirming indicator only, which means that when your regular strategy produces a buy or sell signal, Gunbot will first check if Stoch RSI also produces the same signal before placing an order. This means that both your regular strategy’s settings as your Stoch RSI’s settings will have to be met before Gunbot will place an order. This way can make your strategy safer and get better prices and a more reliable trading strategy. To apply Stoch RSI to your strategy, go to Settings > Strategy configurator and select your strategy, then click the Indicator tab like shown here:

Now click the Stoch RSI button to enable it, it will turn blue to confirm it is on. You will notice a few new parameters appear. You can select the Stoch RSI method, the buy and sell levels and the amount of candles used in the calculations, here you will find a more detailed description of each relevant parameter.

STOCHRSI_ENABLED false Values: true or false.
Setting this to true will make sure Gunbot only trades when both strategy trade conditions and STOCHRSI_BUY_LEVEL/STOCHRSI_SELL_LEVEL are met.
STOCHRSI_METHOD oscillator Values: oscillator or cross.
Sets the method for using StochRSI. See STOCHRSI_BUY_LEVEL and STOCHRSI_SELL_LEVEL for detailed describtions of both methods.
STOCHRSI_BUY_LEVEL 0.2 Values: numerical, ranging between 0 and 1.
Set this to the StochRSI level you want to allow buy orders at.STOCHRSI_METHOD = oscillator: when set to 0.2, buy orders will only be placed when StochRSI is 0.2 or lower.STOCHRSI_METHOD = cross: when set to 0.2, buy orders will only be placed when StochRSI crosses over 0.2.
STOCHRSI_SELL_LEVEL 0.8 Values: numerical, ranging between 0 and 1.
Set this to the StochRSI level you want to allow sell orders at.RSI_METHOD = oscillator: when set to 0.8, sell orders will only be placed when StochRSI is 0.8 or higher.RSI_METHOD = cross: when set to 0.8, sell orders will only be placed when StochRSI crosses under 0.8.
STOCHRSI_LENGTH 14 Values: numerical, represents a number of candlestick periods.
Set this to the number of candlestick periods you want to use for calculating StochRSI.

For a list of all confirming indicators and its parameters, click here.

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