Connors RSI-2 Indicator with Moving Average Filters
Summary
This document presents a ProRealTime adaptation of a TradingView indicator based on Larry Connors’ short-term RSI-2 system. It calculates a two-period Wilder-smoothed RSI and displays reference levels at 0, 10, 90, and 100. The indicator colors the RSI green when price is above the 200-period average, below the five-period average, and RSI is under 10; it colors it red under the opposite price and RSI conditions. Other readings appear gray.
The description says the approach is intended for daily bars and that trades average just over two days in duration. These details characterize the underlying system, but the document supplies no entry or exit instructions beyond the indicator conditions, and no performance data, backtest results, or risk analysis. The color rules can help identify short-term extremes in relation to longer- and shorter-term averages, but the document does not establish that they predict profitable trades. It is an indicator adaptation, so users would need to define and evaluate a complete trading plan separately.
Key ideas
- The indicator uses a two-period Wilder-smoothed RSI.
- It marks RSI levels at 0, 10, 90, and 100.
- A low RSI reading is colored green when price is above its 200-period average and below its five-period average.
- A high RSI reading is colored red when price is below its 200-period average and above its five-period average.
- The source describes the underlying system as a short-term approach for daily bars, with trades averaging just over two days.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.