RSI vs. Stochastic: A Prop Trader's Guide to Indicator Selection – Archyde

RSI vs. Stochastic – Which One Should You Use? 🤔📊 Both are powerful momentum indicators, but they serve different purposes: 🔹 RSI (Relative Strength Index) – Best for identifying overbought/oversold conditions in trending markets. ✅ Ideal for catching trend reversals ✅ Works well in strong trends ✅ Uses a 0-100 scale (above 70 = overbought, below 30 = oversold) 🔹 Stochastic Oscillator – Best for pinpointing momentum shifts in ranging markets. ✅ More sensitive to price movements ✅ Works best

Stochastic Oscillator vs. Stochastic Momentum Index