Composite index

[Mladen Rakic]

Two friends of mine directed me in this direction : it turned out that we do not have a Constance Browns composite index indicator coded .... yet

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A quote from Constance Brown regarding composite index :

The Composite Index was developed to solve the divergence failure problem in the RSI, but its ability to provide specific horizontal levels of support within the indicator adds to its value. The Composite Index takes the normalized formula of RSI and removes the normalization range restrictions. In Figure 5.7, the divergence to RSI in the Composite Index is seen at points N and P. The formula for the Composite Index uses an embedded momentum calculation with a short-term RSI smoothed.

So here it is.

Formula used is the one that comes in the "Breakthroughs in Technical Analysis : New Thinking from Worlds Top Minds" chapter dedicated to Constance Brown (formula can be found at page 81 of that book)

updated version here: https://www.forex-tsd.com/forum/debates-discussions/10996-composite-index#comment_756486

[Mladen Rakic]

...

Some links that might be useful in using the composite index :

The Aerodynamics Investments Inc site is the official Constance Brow site. So, instead of explaining, I thought that it would be useful to seek additional info there (the Composite index gallery is quite good)

The chart gallery : http://www.aeroinvest.com/chartgallery.htmThe composite index chart gallery : COMPOSITE INDEX - Aerodynamic Investments Inc

[eKetas]

mladen:
Some links that might be useful in using the composite index :

The Aerodynamics Investments Inc site is the official Constance Brow site. So, instead of explaining, I thought that it would be useful to seek additional info there (the Composite index gallery is quite good)

The chart gallery : http://www.aeroinvest.com/chartgallery.htmThe composite index chart gallery : COMPOSITE INDEX - Aerodynamic Investments Inc

Thanks for the indicator and gann/fibonacci info.

We all will save 400$ (no need to buy). mhhh.. free things are so sweet

[Laurus12]

Chapter in Breakthroughs in Technical Analysis written by Constance Brown

Hi Guys,

I would just like to correct that chapter 5 on Price and Time with the formulas of the Composite Index indicator by Constance Brown in the book Breakthroughs in Technical Analysis are written by her and not dedicated to her.

- Laurus

[ZTrader]

I'm confused... is this for Forex or for stock indices?

[Laurus12]

ZTrader:
I'm confused... is this for Forex or for stock indices?

The Composite Index works for all markets and all time frames.

[ozimacca]

I know this is an old thread but I have been watching the performance of this indi as an Overbought oversold guide.

Not infallible but I think it is better than RSI and would like to monitor it for a while. Without an alert I have to watch all the time so can only watch 1 pair.

If not available, is it possible for someone to add an alert just to the 3MA line with adjustable level lines

thanks

[William Snyder]

Composite index from here: https://www.mql5.com/en/forum/179426 updated to be compatible with new mt4 builds.

[pol]

mrtools:
Composite index from here updated to be compatible with new mt4 builds.

Could someone please make it MTF?

Thanks

[William Snyder]

polik:
Could someone please make it MTF? Thanks

Polik, made it mtf.

[fawaz]

mrtools:
Polik, made it mtf.

Thanks for the great work. Is it possible to add plotting divergence to the indicator?

Regards

Fawaz