Extra indicators
Connors RSI
A short-term oscillator that averages three things: a 3-period RSI, the RSI of the up/down streak and the rank of today's change.
The idea in plain words
For short-term swings, three questions matter: is momentum stretched, how long has the run lasted and how unusual is today's move. Connors RSI averages the three answers on one 0–100 scale.
How it is calculated
RSI(3) of closes; RSI(2) of the streak (consecutive up or down candles); percent rank of today's return among the last 100. Connors RSI is the average of the three.
CRSI = (RSI(close, 3) + RSI(streak, 2) + PercentRank(return, 100)) ÷ 3How to use it
- Below 10: very oversold for short-term bounce trades; above 90: very overbought.
Drawing conclusions
- Built for short holding periods (days), mostly on stocks and indices.
Example
US100 daily: CRSI falls to 6 after four down days in a row in an uptrend; the method looks for a bounce.
Prices in examples are illustrative.
Watch out for
- Against a strong trend, oversold can become more oversold.
A little history
Developed by Larry Connors and Connors Research (2012).
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.