CRSI

#momentum  

This indicator blends three different momentum measurements into one reading: standard price momentum, the length of winning or losing streaks, and the strength of recent price changes. By combining these three angles, it gives you a fuller picture of momentum than a regular RSI alone. The result is a single line between 0 and 100, with a signal line to smooth out the noise. 

Default period: 3 days (RSI), 10 days (streak), 22 days (run length) 

Line behavior: Oscillates between 0 and 100. Readings above 70 suggest overbought conditions; below 30 suggest oversold. The signal line acts as a moving average for crossover signals. 

Useful readings: Extreme readings near 0 or 100 warn that momentum is exhausted. When the line crosses its signal line, it can confirm a momentum shift. Divergences between price and CRSI often precede reversals. 

Objective rules: 

– CRSI above 70 = overbought, prepare for potential pullback 

– CRSI below 30 = oversold, prepare for potential bounce 

– CRSI crosses above signal line = bullish momentum shift 

– CRSI crosses below signal line = bearish momentum shift

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.