Larry Connors' short-term mean-reversion oscillator that bundles three appetites into one line: price, the up/down streak, and the rank of today's return. It swings to extremes faster than a plain RSI and measures how many days the crowd has run the same way.
Connors RSI (CRSI) is a composite oscillator devised by the trading researcher Larry Connors.
Where a plain RSI watches only price, Connors RSI averages three measurements of different character into a single line that reads short-term overheating.
The first is a very short RSI of the close (period 3). It picks up sensitively whether the recent action is skewed up or down.
The second is an RSI of the up/down streak (period 2). It measures continuity itself: how many days price has risen in a row, or fallen in a row.
The third is the percentile rank of today's return over the last 100 days. It expresses how extreme today's one-day return is compared with the past 100 days, as a rank.
Connors RSI is the sum of these three divided by three. It is bounded between 0 and 100, with aggressive thresholds: below 10 is oversold (buy), above 90 is overbought (sell).
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