Larry Connors MTF Cumulative RSI Chart Setup For ThinkOrSwim

theLEMband

Member
VIP
I was reading about Larry Connors 2 period Cumulative RSI and put together a script last night. Looked at Peloton this AM, running 4, 15, and 1 hour periods (I add them separately, rather than grouping them on the same lower frame). Waiting for 60 min and 15 minute to coincide and then entering on next 4 min trigger yielded signals below:

Uc0zMDV.png


Cumulative RSI Shared Link: http://tos.mx/DEir1Hv
Cumulative RSI mtf Shared Link: http://tos.mx/Xf0bOXB
Click here for --> Easiest way to load shared links

The code for the current timeframe is:
Code:
# 2-Period CumulativeRSI by theLEMband
# Modification of TOS RSI
# Idea from Larry Connors book

declare lower;

input length = 2;
input over_Bought = 170;
input over_Sold = 30;
input price = close;
input averageType = AverageType.WILDERS;
input showBreakoutSignals = yes;

def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

def RSI = 50 * (ChgRatio + 1);
plot RSICumul = RSI + RSI[1];
plot OverSold = over_Sold;
plot OverBought = over_Bought;
plot UpSignal = if RSICumul crosses above OverSold then OverSold else Double.NaN;
plot DownSignal = if RSICumul crosses below OverBought then OverBought else Double.NaN;

UpSignal.SetHiding(!showBreakoutSignals);
DownSignal.SetHiding(!showBreakoutSignals);

RSICumul.DefineColor("OverBought", GetColor(5));
RSICumul.DefineColor("Normal", GetColor(7));
RSICumul.DefineColor("OverSold", GetColor(1));
RSICumul.AssignValueColor(if RSICumul > over_Bought then RSICumul.color("OverBought") else if RSICumul < over_Sold then RSICumul.color("OverSold") else RSICumul.color("Normal"));
OverSold.SetDefaultColor(GetColor(8));
OverBought.SetDefaultColor(GetColor(8));
UpSignal.SetDefaultColor(Color.UPTICK);
UpSignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
DownSignal.SetDefaultColor(Color.DOWNTICK);
DownSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);

The code for the alternate timeframe:

Code:
# Alternate Timeframe 2-Period CumulativeRSI by theLEMband
# Modification of TOS RSI
# Idea from Larry Connors book
# add this study for each higher timeframe that you want to see

declare lower;

input timeframe = AggregationPeriod.FOUR_MIN;

input length = 2;
input over_Bought = 170;
input over_Sold = 30;
def price = close(period = timeframe);
input averageType = AverageType.WILDERS;
input showBreakoutSignals = no;

def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

def RSI = 50 * (ChgRatio + 1);
plot RSICumul = RSI + RSI[1];
plot OverSold = over_Sold;
plot OverBought = over_Bought;
plot UpSignal = if RSICumul < OverSold then OverSold else Double.NaN;
plot DownSignal = if RSICumul > OverBought then OverBought else Double.NaN;

UpSignal.SetHiding(!showBreakoutSignals);
DownSignal.SetHiding(!showBreakoutSignals);

RSICumul.DefineColor("OverBought", GetColor(5));
RSICumul.DefineColor("Normal", GetColor(7));
RSICumul.DefineColor("OverSold", GetColor(1));
RSICumul.AssignValueColor(if RSICumul > over_Bought then RSICumul.color("OverBought") else if RSICumul < over_Sold then RSICumul.color("OverSold") else RSICumul.color("Normal"));
OverSold.SetDefaultColor(GetColor(8));
OverBought.SetDefaultColor(GetColor(8));
UpSignal.SetDefaultColor(Color.UPTICK);
UpSignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
DownSignal.SetDefaultColor(Color.DOWNTICK);
DownSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);

Test it out and see if you find it helpful in conjunction with support/resistance or other signals. Let me know what results.
 
Last edited by a moderator:
I was reading about Larry Connors 2 period Cumulative RSI and put together a script last night. Looked at Peloton this AM, running 4, 15, and 1 hour periods (I add them separately, rather than grouping them on the same lower frame). Waiting for 60 min and 15 minute to coincide and then entering on next 4 min trigger yielded signals below:

Uc0zMDV.png


The code for the current timeframe is:

Code:
# 2-Period CumulativeRSI by theLEMband
# Modification of TOS RSI
# Idea from Larry Connors book

declare lower;

input length = 2;
input over_Bought = 170;
input over_Sold = 30;
input price = close;
input averageType = AverageType.WILDERS;
input showBreakoutSignals = yes;

def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

def RSI = 50 * (ChgRatio + 1);
plot RSICumul = RSI + RSI[1];
plot OverSold = over_Sold;
plot OverBought = over_Bought;
plot UpSignal = if RSICumul crosses above OverSold then OverSold else Double.NaN;
plot DownSignal = if RSICumul crosses below OverBought then OverBought else Double.NaN;

UpSignal.SetHiding(!showBreakoutSignals);
DownSignal.SetHiding(!showBreakoutSignals);

RSICumul.DefineColor("OverBought", GetColor(5));
RSICumul.DefineColor("Normal", GetColor(7));
RSICumul.DefineColor("OverSold", GetColor(1));
RSICumul.AssignValueColor(if RSICumul > over_Bought then RSICumul.color("OverBought") else if RSICumul < over_Sold then RSICumul.color("OverSold") else RSICumul.color("Normal"));
OverSold.SetDefaultColor(GetColor(8));
OverBought.SetDefaultColor(GetColor(8));
UpSignal.SetDefaultColor(Color.UPTICK);
UpSignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
DownSignal.SetDefaultColor(Color.DOWNTICK);
DownSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);

The code for the alternate timeframe:

Code:
# Alternate Timeframe 2-Period CumulativeRSI by theLEMband
# Modification of TOS RSI
# Idea from Larry Connors book
# add this study for each higher timeframe that you want to see

declare lower;

input timeframe = AggregationPeriod.FOUR_MIN;

input length = 2;
input over_Bought = 170;
input over_Sold = 30;
def price = close(period = timeframe);
input averageType = AverageType.WILDERS;
input showBreakoutSignals = no;

def NetChgAvg = MovingAverage(averageType, price - price[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price - price[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

def RSI = 50 * (ChgRatio + 1);
plot RSICumul = RSI + RSI[1];
plot OverSold = over_Sold;
plot OverBought = over_Bought;
plot UpSignal = if RSICumul < OverSold then OverSold else Double.NaN;
plot DownSignal = if RSICumul > OverBought then OverBought else Double.NaN;

UpSignal.SetHiding(!showBreakoutSignals);
DownSignal.SetHiding(!showBreakoutSignals);

RSICumul.DefineColor("OverBought", GetColor(5));
RSICumul.DefineColor("Normal", GetColor(7));
RSICumul.DefineColor("OverSold", GetColor(1));
RSICumul.AssignValueColor(if RSICumul > over_Bought then RSICumul.color("OverBought") else if RSICumul < over_Sold then RSICumul.color("OverSold") else RSICumul.color("Normal"));
OverSold.SetDefaultColor(GetColor(8));
OverBought.SetDefaultColor(GetColor(8));
UpSignal.SetDefaultColor(Color.UPTICK);
UpSignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
DownSignal.SetDefaultColor(Color.DOWNTICK);
DownSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);

Test it out and see if you find it helpful in conjunction with support/resistance or other signals. Let me know what results.
Is there a share code for the lower studies MultipleTFCumulativeRSI?
 
this is a losing strategy, backtested it on several equities on PRT, several TF with 200k bars, not a single one positive
 
Yeah, I abandoned it some time ago. I think it would only have a chance of working in trending markets with the stock on a verified uptrend, but it wasn't worth pursuing.
What is PRT?
 
Thank you theLEMband for posting the code for this indicator. I'm testing it on different markets, ETFs, futures and while it sends many false signals, many times it follows along well with Buy the Dip indicator.
 
Last edited by a moderator:
This indicator definitely works best when you are in a confirmed trend and then get the signal. Even better when the signal occurs at support/resistance. Trading this in a choppy market will decimate an account.
 
Last edited by a moderator:

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
477 Online
Create Post

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top