Connors RSI: A Powerful Twist on a Classic Indicator
Last updated
Last updated
Connors RSI (CRSI) is a momentum oscillator created by Larry Connors, designed to improve upon the traditional Relative Strength Index () developed by J. Welles Wilder. While RSI measures price strength based on recent gains and losses, Connors RSI combines three components to provide a more refined view of short-term price momentum and overbought/oversold conditions.
CRSI is particularly popular among short-term traders and algorithmic systems due to its sensitivity and responsiveness.
The Connors RSI is a composite indicator consisting of three elements:
Short-term RSI (usually 3-period) – This is a faster version of the classic RSI and measures short-term price momentum.
Streak Length RSI – Measures the number of consecutive up or down days (price streak) and applies RSI logic to it.
Rate-of-Change Ranking (ROC Rank) – Ranks how the current price change compares to the last X days (commonly 100 days), producing a percentile score.
The final CRSI value is the average of these three components:
Connors RSI = (RSI of closing price + RSI of streak length + ROC rank) / 3
This combination helps filter out noise and gives a more precise overbought/oversold reading, especially in fast-moving markets.
CRSI is plotted on a scale from 0 to 100, just like traditional RSI.
📉 Below 20: Oversold territory — potential buy signal.
📈 Above 80: Overbought territory — potential sell signal.
🔁 Between 20-80: Neutral or consolidation zone.
Because of its design, CRSI reacts more quickly than standard RSI, making it effective for spotting short-term reversals.
The default and most commonly used parameters are:
RSI Period: 3
Streak RSI Period: 2
Rate-of-Change Rank Lookback: 100 days
However, these can be adjusted depending on your trading timeframe. For intraday scalping or high-frequency trading, even shorter values may be tested. For swing trading, these defaults often work very well.
💡 Pro tip: Always backtest and fine-tune parameters based on your asset and time frame.
Here are a few ways traders typically integrate Connors RSI into their strategies:
Buy when CRSI drops below 20 and shows signs of bottoming.
Sell when CRSI rises above 80. This works well in sideways or range-bound markets.
Identify a strong uptrend using a moving average (e.g., 50 EMA).
Wait for CRSI to dip below 20 during a pullback.
Buy into the pullback and ride the continuation.
Combine CRSI with Bollinger Bands for mean reversion confirmation.
Use with MACD or Moving Averages to align with trend direction.
Many algo and bot strategies include CRSI as a filter or condition due to its fast reactivity and ability to detect short-term momentum shifts.
Despite its power, Connors RSI is often misunderstood. Avoid these common errors:
🚫 Trading it like a long-term RSI CRSI is built for short-term analysis. Don’t use it alone for long-term investing decisions.
🚫 Overreliance without context Like any indicator, CRSI is best used with confluence — market structure, support/resistance, or volume.
🚫 Ignoring volatility CRSI can give false signals in high-volatility markets. Always adapt your stop losses accordingly.
✅ Combines multiple perspectives of momentum ✅ Reacts quickly to short-term price changes ✅ Perfect for scalping, swing trades, and bots ✅ Easily customized for different markets
In the fast-paced world of crypto, where conditions change rapidly, Connors RSI gives traders a sharper tool to stay ahead of the curve.
Connors RSI is not just another tweak to RSI — it’s a powerful tool in its own right. Its layered structure allows traders to detect opportunities that a traditional RSI might miss. Whether you’re a discretionary day trader or building automated systems, CRSI adds depth to your analysis and timing precision to your entries.
But remember: no indicator is a magic bullet. Always use proper risk management, and combine CRSI with other tools and experience to make the most out of your trades.
