Question 1

What is StochRSI?

Accepted Answer

StochRSI measures how stretched a stock's momentum is, on a scale of 0 to 100. It gets there by applying the stochastic oscillator to RSI values instead of to price, so it reads the momentum of the momentum. A reading near 100 means RSI is sitting at the top of its own recent range, and a reading near 0 means the bottom. This site computes it exactly as the Pine Script reference does: Wilder's RMA, RSI 14, stochastic 14, and K and D smoothed over 3.

Question 2

What does a StochRSI reading of 100 mean?

Accepted Answer

It means momentum is as stretched as it has been in the last 14 periods, because RSI is sitting at the very top of its own range. On a monthly or annual bar that is rare, and it tends to last, which is why this site treats it as a reason to start watching a stock rather than a reason to buy it straight away.

Question 3

How do you trade a StochRSI pullback?

Accepted Answer

The pattern this site tracks is a pullback re-entry in three steps. First, a stock qualifies when monthly or annual StochRSI K and D both reach 100 and it joins the watchlist. Second, it becomes armed when daily K falls to 20 or below. Third, a signal fires when daily K recovers back above 20, which means the dip is over and the long term trend is still intact.

Question 4

Which markets does the Signal desk cover?

Accepted Answer

US stocks on the NYSE, NASDAQ and AMEX, plus Brazilian stocks on B3. The monthly scan runs on the last day of each month, the annual scan on the first of the month, and the daily signal scan every weekday at 22:10 UTC, after the US close.

Question 5

Does a stock need more than a StochRSI reading to produce a signal?

Accepted Answer

Yes. Two filters on the business itself must also pass before a stock joins a watchlist or a signal is recorded: analysts have to expect earnings to grow at least 10 percent a year, and BlackRock, Vanguard and State Street have to be adding to their positions rather than cutting them. Both are checked against data pulled fresh at that moment, and if either one cannot be checked the stock is not admitted. Where there is doubt, the answer is no.

Question 6

Is the Signal desk investment advice?

Accepted Answer

No. It is a public record of a mechanical screen. The percentages shown are plain price changes with no positions, sizing or costs behind them, so they are not a real world return.

Signals

Watchlist

Signal desk: monthly and annual watchlists with daily pullback signals

Signals

Watchlist