HAPIStochRSI

Relative Strength Stochastic.

HAPIStochRSI 

Purpose: Combines momentum and trend analysis to identify overbought and oversold conditions in stock index futures, guiding reversal or continuation trades.

Description:

• Authored by Tushar Chande, HAPIStochRSI blends Stochastic and RSI to measure momentum and trend strength, making it a top indicator after CI.
• Oscillates between 0 and 100; readings above 80 indicate overbought conditions, while below 20 signal oversold conditions.
• Helps traders spot reversals or continuations; for example, a rejection at +80 often precedes a price drop.
• Learn more about Chande’s methodology in his book, listed on Hamzei Analytics’ ‘Suggested Readings’ tab.

NinjaTrader Use:

• Plotted as a line in a NinjaTrader subgraph, oscillating between 0 and 100.
• Key levels at 20 (oversold) and 80 (overbought) are marked for easy identification.
• Integrates with RadarScreen to scan for overbought/oversold signals across instruments.
• No user inputs required; automatically calculated for day session data.

Practical Example:

• On April 2, 2025, for ES futures, HAPIStochRSI reaches +80 (overbought) midday near 5800, a third test.
• Price reverses, dropping sharply over the next few days.
• By April 6, after five tests at 20, price hits 4850, offering a 950 point short trade from the 5800 peak.