Connors RSI: Combining Price RSI, Streak RSI, and Percentile Rank

Summary

Connors RSI is described as an oscillator formed by averaging three components: a conventional RSI on the chosen price, an RSI applied to the length of consecutive up or down closes, and a percentile-rank measure of recent changes. The streak component increments when price closes above the prior close and decrements when it closes below; when the close is unchanged, the streak resets to a value based on its prior sign. The rank component counts positive increments of a two-period RSI over its lookback window.

The document lists six configurable inputs, including the periods for the RSI, streak RSI, and percentile rank, as well as applied price and overbought and oversold levels. It gives a calculation outline rather than trading rules, empirical testing, or evidence that any thresholds are effective. The count description is brief, and implementation details such as handling ties and the exact percentile-rank convention are not fully specified. Users would need to define these details consistently before comparing signals or evaluating the oscillator.

Key ideas

• Connors RSI is the average of price RSI, streak RSI, and a percentile-rank component.
• The streak input tracks consecutive closes above or below the previous close, with a sign-based reset for unchanged closes.
• The rank component uses positive changes in a two-period RSI over a lookback window.
• The indicator has configurable periods, applied price, and overbought and oversold levels.
• The document gives no trading thresholds, backtest, or complete implementation conventions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.