Similar to the RSI, the stochastic oscillator helps in determining trends and predicting reversals.
This oscillator is made up of two lines:
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K%, which reflects the actual value of the oscillator, and,
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D%, which is a 3-day moving average of K%.
An intersection of these two lines is considered to be a signal that a reversal may come soon.
The ‘stochastic RSI’ is a combination of the RSI and stochastic oscillator, where the oscillator’s values are calculated using the RSI instead of the price of the stock.
We can combine this with the Supertrend to get a simple & effective trading strategy, famously called the ‘loss recovery strategy’ by one of our experienced instructors.
Learn the strategy and discover 3 stocks that we shortlisted as per the strategy in our latest newsletter issue 
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