CRSI

Creator: Larry Connors

RSI period: 3

RSI Streak Period: 3

RM Period: 100

Average Period: 3

In the CRSI indicator, two lines are plotted below the chart.

1 – Green line represents CRSI

2 – Red line represents the Average of CRSI

The relative strength index (RSI) is one of the most popular momentum indicators.

It is important to note that ConnorsRSI tends to generate fewer trading signals than traditional RSI for short-term trading, despite the increased volatility in short-term trading.

The CRSI indicator is calculated in multiple steps using three major components. The CRSI indicator ranges from 0 to 100. According to Connors, the parameters for the three components should be 3, 2, and 100. To determine overbought and oversold levels, Connors recommends using 90 and 10, but these can be adjusted depending on your analysis requirements.

The CRSI above 90 is considered to be an overbought condition, while the CRSI below 10 is considered to be an oversold condition.

By combining the Connors RSI with additional indicators, the trading system may become more efficient.

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.