Created by Larry Connors, this indicator is a composite of three separate components. Two of the three components utilize the Relative Strength Index (RSI) calculations developed by Welles Wilder in the 1970’s, and the third component ranks the most recent price change on a scale of 0 to 100.
Indicator Description
The Connors RSI is a momentum oscillator with three components: The RSI, UpDown Length and Rate-of-Change. The output value between 0 and 100 identifies short-term overbought and oversold conditions.
One may use the Connors RSI together with other indicators, considering long/short opportunities:
- Long setup when cross above 30
- Exit long scenario when cross below 70
- Short setup when cross below 70
- Exit short scenario when cross above 30
Other library indicators
The Connors RSI is most reliable when aligned with the mid/higher time frame trend bias and Volume / Range Analysis. You may for example review the trend bias using the Donchian Channel, Heikin Ashi Candles, the Regression Channel or the Daily Regression Channel. For Volume / Range Analysis you may have a look at the Force Index, Relative Volume or Relative Ranges. The Donchian Channel, Heikin Ashi, Regression Channel, Relative Volume and the Relative Ranges were reviewed in our Indicator Spotlight.
Apart from the Connors RSI, the advanced oscillators category also features the Laguerre RSI. The momentum oscillator category furthermore has a new an improved version of the standard Relative Strength Index, Stochastic RSI and the Slow RSI and the Traders Dynamic Index (TDI). Additional info on the TDI indicator, which applies the RSI to three timeframes, was also discussed our Indicator Spotlight.
The indicator is available for NinjaTrader 8.
