History and Background

Larry Connors developed the Connors RSI as an improvement on the traditional Relative Strength Index (RSI). While the classic RSI focuses solely on recent price gains and losses, Connors' version goes further by layering in two additional factors: the length of consecutive up or down closes (known as the streak), and the short-term rate-of-change rank.

This enhanced version for cTrader adds complete transparency by displaying each internal component, Price RSI, Streak RSI, and ROC Rank, giving traders more control and visibility into what's driving signals.

How the Indicator Works

The Connors RSI is calculated by averaging three values:

1. Price RSI – a short-period RSI of closing prices.
2. Streak RSI – RSI of consecutive up or down streaks in price.
3. ROC Percent Rank – the percentage rank of rate-of-change over a user-defined period.

Each component captures a different aspect of momentum. The final Connors RSI value is the average of the three, offering a richer, more nuanced view than a basic RSI. This advanced version outputs all three components individually as well as the final composite, making it easier for traders to fine-tune strategies.

Key Features

• Displays Connors RSI as well as internal components: Price RSI, Streak RSI, and ROC Rank
• Customizable input parameters for deeper strategy tuning
• Helps detect short-term price extremes and mean reversion opportunities
• Improved accuracy over traditional RSI-based indicators
• Built-in licensing check for secure and authorised usage
• Works seamlessly on the cTrader platform

How to Use it for Trading

The Connors RSI is handy for short-term reversal trading, and when the value drops below 20, it may signal oversold conditions, indicating a potential buy opportunity. When it rises above 80, the market might be overbought, which may be a time to sell or avoid new long entries.

By observing the individual components, traders can see why the indicator is reacting the way it is, e.g., is the pressure from price streaks, momentum shifts, or volatility?

This is ideal for traders using scalping or short-term swing strategies.

Conner RSI Formula

Connors RSI = (RSI of Closing Price + RSI of Price Streak + Percent Rank of ROC) / 3

The Connors RSI is a great tool for spotting short-term reversals, but it can give misleading signals in strong trends. Since it’s built for mean reversion, it works best in sideways or range-bound markets. To improve reliability, it’s often combined with trend filters or key support and resistance zones. Like any oscillator, it should be used alongside other tools, not as a standalone system.

How To Install & Remove

First, ensure that you have the cTrader trading platform installed. Then, unzip the file and double-click it to install the platform automatically.

• How to install
• How to open
• How to remove
• How to edit settings

Help Using This Indicator

If you need help using this indicator, try asking cTrader Sensei, our free AI assistant dedicated to the cTrader platform, rated 4.9 out of 5 in the ChatGPT Store. It can guide you through setup, usage, and troubleshooting with clear, step-by-step support.

• Chat with cTrader Sensei.

If you still need assistance, feel free to post your question on our product support forum, where our team and community can help.

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