Indicator Description

SRMI (Stochastic RSI Momentum Index) is a momentum indicator that reflects the overbought and oversold state and trend changes in the market by calculating the stochastic value of RSI.

Calculation Principle

SRMI is calculated using the following formula:

RSI_Value = RSI(Close, timeperiod)
SRMI = (RSI_Value - Lowest RSI) / (Highest RSI - Lowest RSI) * 100

Where RSI is the Relative Strength Index, Lowest RSI/Highest RSI are the extreme RSI values in the period.

Usage Scenarios

1. Overbought and oversold judgment
2. Trend reversal identification
3. Divergence signal analysis
4. Trading signal generation

Usage Recommendations

1. SRMI rising from the oversold area can be seen as a buy signal
2. SRMI falling from the overbought area can be seen as a sell signal
3. Use in combination with RSI
4. Pay attention to the use of divergence signals