Connors RSI Indicator Explained

Connors RSI (CRSI), from Larry Connors' quant research, averages three components: a fast 3-period RSI of price, a 2-period RSI of the current up/down streak, and the percentile rank of the latest return. It was engineered specifically for short-term mean reversion — measuring 'how stretched is this, really?' three ways at once.

How It Works

• Component 1: RSI(3) of price — short-term momentum.
• Component 2: RSI(2) of the streak of consecutive up/down closes.
• Component 3: percent rank of today's return vs the last 100 — all averaged into 0–100.

How to Trade It

Connors' published rules buy extreme oversold (CRSI < 10, often < 5) in uptrending instruments and exit quickly on the snap-back above ~70. It's a fast in-and-out tool: small targets, high win rate, strict regime filter — never fade a crashing market without one.

Building It in Setup.Cash

Add Connors RSI in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Compare with plain RSI(2) style fading and Z-Score reversion. For the full category overview, see the advanced momentum library guide.

Momentum signals are timing tools — combine them with a trend or regime filter and backtest the exact rules before going live.