Connors RSI (CRSI) Indicator

The Connors RSI (CRSI) is a technical analysis indicator developed by Larry Connors. It combines three different components to provide a more sensitive and responsive measure of market conditions compared to the traditional RSI (Relative Strength Index). The Connors RSI is particularly useful for short-term traders.

Components of Connors RSI:

  1. RSI of Closing Price (RSI_C):

    • The traditional 3-period RSI calculated based on closing prices.

  2. RSI of the Streak (RSI_S):

    • The streak is the number of consecutive up or down closes. The RSI is then calculated on the streak values over a specified period (usually 2-period RSI).

  3. Rate of Change (ROC):

    • The rate of change of the closing price over a specified period (usually 100-period).

Calculation:

  1. RSI of Closing Price (RSI_C):

    • Calculate the 3-period RSI of the closing prices.

  2. RSI of the Streak (RSI_S):

    • Calculate the streak (consecutive up or down closes).
    • Calculate the 2-period RSI of the streak.

  3. Rate of Change (ROC):

    • Calculate the 100-period Rate of Change of the closing price.
    • Normalize the ROC to be between 0 and 100.

  4. Connors RSI (CRSI):

    • Average the three components to get the Connors RSI.