Connors RSI

What is Connors RSI?

Connors RSI is a composite oscillator published by Larry Connors' research group for short-term mean reversion. It averages three 0-100 components: a fast RSI of closing price (3 periods in the standard form), an RSI of the streak (the signed count of consecutive up or down closes, typically 2 periods), and the percentile rank of the latest one-bar return against the prior 100 returns. The blend scores how far price has pushed, how persistent the push has been, and how unusual the latest bar is.

It extends the same philosophy as Connors' earlier short-lookback work such as RSI-2: fast, extreme readings that flag stretched conditions expected, though never guaranteed, to snap back within a few bars. With three short inputs the indicator swings to its extremes frequently and is designed for tactical entries, not trend measurement.

How traders use it

• Mean-reversion entries at extremes: readings near the top of the scale (often above 90) mark short-term overbought and readings near the bottom (often below 10) short-term oversold, usually traded in the direction of a longer-term trend filter rather than blindly against strength.
• Exit timing for those trades: positions opened at one extreme are commonly closed when the reading crosses back through a neutral level, keeping holding periods to a handful of bars.
• As one stretch score among several inputs: an extreme value alone says nothing about how long a strong trend can stay extreme, so systems typically pair it with regime and structure context.