This mean-reversion strategy combines multi-timeframe exponential moving averages, Bollinger Bands, and the Relative Strength Index. It generates long and optional short trade signals when price interacts with the Bollinger Bands alongside RSI threshold confir
Strategy · Pine Script v6 · On the chart
Larry Connors 2-Period RSI Strategy
This strategy implements Larry Connors' 2-period RSI mean-reversion algorithm overlaid on the price chart.
GitHub stars53on the repository
Pine versionv6current
Lines of code33
Settings5inputs
LicenceMPL-2.0
Last update2 months ago17 Aug 2026
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
33 lines of Pine Script v6 from Quant-Edge-Indicators/RSI & Momentum/Larry Connors RSI Strategy.pinescript, published under MPL-2.0. Keep the author's credit and licence lines when you reuse it.
// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Ahmed - Quant-Edge Indicators
//@version=6
strategy("Larry Connors 2-Period RSI Strategy", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=100)
// === INPUTS ===
rsiPeriod = input.int(2, title="RSI Period", minval=1)
rsiEntryThreshold = input.int(10, title="RSI Entry Threshold (Below)", minval=1)
rsiExitThreshold = input.int(70, title="RSI Exit Threshold (Above)", minval=1)
smaPeriod = input.int(200, title="Trend SMA Period", minval=1)
maxBarsHold = input.int(3, title="Max Bars in Trade", minval=1)
// === INDICATORS ===
rsi = ta.rsi(close, rsiPeriod)
sma200 = ta.sma(close, smaPeriod)
// === TIME VARIABLES ===
var int barSinceEntry = na
inPosition = strategy.opentrades > 0
// === LONG ENTRY CONDITIONS ===
longCondition = close > sma200 and rsi < rsiEntryThreshold and not inPosition
if (longCondition)
strategy.entry("Long", strategy.long)
barSinceEntry := 0 // Reset bar counter
// === EXIT CONDITIONS ===
barSinceEntry := inPosition ? barSinceEntry + 1 : na
exitByRSI = rsi > rsiExitThreshold
exitByTime = barSinceEntry >= maxBarsHold
if (inPosition and (exitByRSI or exitByTime))
strategy.close("Long")
Overview
Larry Connors 2-Period RSI Strategy filters trades using a long-term Simple Moving Average (SMA), entering long positions when the price trades above the SMA and the short-term RSI drops below an oversold threshold. Positions exit when the RSI rises above an overbought threshold or after a maximum bar holding period is reached. User settings control the RSI period, entry/exit levels, trend SMA length, and holding bar limit. The strategy lacks a stop loss mechanism.
- 2-period Relative Strength Index mean-reversion model
- 200-period Simple Moving Average trend filter
- Short-term RSI oversold entry signals
- RSI overbought and bar-count exit rules
Details
Published by
Ahmed-GoCode on GitHub
Code credit
Ahmed - Quant-Edge Indicators, as written in the script's header
Type
Strategy, Pine Script v6
Draws
On the price chart
Category
Oscillators & momentum, Mean reversion, Moving averages
Markets
Any symbol
Timeframes
M15-H1, H4 and above
Risk Notes
- The strategy enters trades without a stop loss
Topics
fair-value-gapfibonaccimarket-structurepine-scriptrsi-strategysmart-money-conceptstechnical-analysistradingviewalgorithmic-tradingcrypto-trading
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| RSI Period | int | 2 | rsiPeriod |
| RSI Entry Threshold (Below) | int | 10 | rsiEntryThreshold |
| RSI Exit Threshold (Above) | int | 70 | rsiExitThreshold |
| Trend SMA Period | int | 200 | smaPeriod |
| Max Bars in Trade | int | 3 | maxBarsHold |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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