📊 TECHNICAL
Connors RSI
A composite short-term oscillator by Larry Connors that blends price RSI, streak-duration RSI, and a rate-of-change percentile rank for sharper extremes.
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Live Demo — Connors RSI applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is Connors RSI?
Connors RSI (CRSI) was created by Larry Connors and Connors Research to improve on standard RSI for short-term mean-reversion trading. It averages three components — price momentum, the duration of the current up/down streak, and a percentile ranking of the latest price change — into one composite 0-100 oscillator.
Formula
Component 1: RSI(Close, rsiLength)
Component 2: RSI(StreakLength, streakLength)
Component 3: PercentRank(ROC(Close,1), rankLength)
Connors RSI = (Component1 + Component2 + Component3) / 3Parameters
| Parameter | Default | Description |
|---|---|---|
| RSI Length | 3 | Period for the price RSI component |
| Streak RSI Length | 2 | Period for the RSI of the streak length |
| Rank Length | 100 | Lookback for the percentile rank of the 1-day ROC |
Signal Interpretation
- Readings below 5-10 indicate extreme short-term oversold conditions; above 90-95 extreme overbought.
- CRSI extremes are considered more statistically significant than a single RSI crossing 30/70.
- The streak component resets sharply on any reversal, capturing short-term exhaustion.
- The rank component flags unusually large single-day moves relative to the last 100 bars.
- CRSI mean-reverts quickly and is not meant for multi-week trend signals.
Tips & Best Practices
- Use CRSI for mean-reversion setups on range-bound or pullback trades, not trend-following.
- Pair extremes with a broader trend filter (e.g., only buying <10 readings when price is above its 200-day MA).
- Short lookbacks make results noisy on illiquid or gappy instruments.