The StochRSI with region crossovers is simply the StochRSI, but used in a different way. TheStochRSI gives a buy signal when it’s in oversold and a sell signal when it’s overbought. However, with this indicator this works slightly different.

It has two modes: Signal on region IN (default) and Signal on region OUT.

Signal on region IN:

Instead of, for example, signaling a buy when the StochRSI is oversold, it will only signal a buy when the StochRSI goes from the oversold zone back into the neutral zone. That is, when the StochRSI crosses the oversold limit and becomes neutral again.

In this way, a buy signal is generated once the Stochastic starts recovering positive momentum and the price has already started going up. The same logic applies to sell signals.

Signal on region OUT:

Instead of, for example, signaling a buy when the Stochastic is oversold, it will only signal a buy when the StochRSI goes from the neutral zone to the oversold zone. That is, when the StochRSI crosses the neutral limit and becomes oversold.

In this way, a buy signal is generated once the Stochastic is falling very quickly. The same logic applies to sell signals.