Description:
Connors RSI (CRSI) is a momentum oscillator developed by Larry Connors and the team at Connors Research. The primary purpose of this technical analysis indicator is to identify overbought and oversold conditions in shorter trading timeframes. It aims to improve the traditional 14-period RSI indicator developed by Welles Wilder, which reacts too slowly for short-term trading.
Input Parameters:
- RSI: Measures the speed and change of price movements on a scale of 0 to 100. It is designed to identify overbought and oversold conditions in a market. Wilder's RSI contributes to two of the three components in this indicator.
- Up/Down: Measures the number of consecutive up or down days.
- Rate of Change (ROC): Measures the percentage change in this indicator over a specified number of periods.
- Upper: Presets to 70 which represents the upper boundary of the indicator.
- Lower: Presets to 30 which represents the lower boundary of the indicator.
Use Cases:
- CRSI Crossovers: Traders can use CRSI crossovers with predefined overbought and oversold levels (e.g., 30 and 70) to generate buy and sell signals. When the CRSI crosses above 30, it can be considered a buy signal; when it crosses below 70, it can be viewed as a sell signal.
- CRSI Divergences: As mentioned earlier, traders can use positive and negative divergences between price and CRSI to anticipate potential trend reversals.
- CRSI Breakouts: Traders can look for breakouts from consolidation patterns, such as triangles or rectangles, accompanied by a strong CRSI reading, indicating a potential trend continuation.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.