this Hybrid Stochastic index is a Stochastic RSI clarified by the famous Tushar Chande and Stanley Kroll in their book called “The New Technical Trader”. the main goal of this index is to generate additional Overbought and Oversold signals compared to traditional Relative strength index (RSI). Combining these 2 indicators expands the range of the overbought and oversold land.

The idea behind this is to use the Stochastic formula over RSI worth. If you want to know more about its inner workings there is a fantastic post in the Investopedia site.

• %K, %D, and Slowing calculations periods.
• RSI period.
• Overbought