Stochastic RSI

Stochastic RSI (StochRSI) is an indicator used in technical analysis that ranges between zero and one (or zero and 100 on some charting platforms) and is created by applying the Stochastic oscillator formula to a set of relative strength index( RSI) values rather than to standard price data.

The StochRSI oscillator was developed to take advantage of both momentum indicators in order to create a more sensitive indicator that is attuned to a specific security's historical performance rather than a generalized analysis of price change.

One downside the StochRSI tends to be quite volatile, rapidly moving from high to low.

Fundamentally we use the stochastic related to Elliot waves because wave 3 it shows the figure of a snake followed by a reset in wave 4