shayankm

RSI + Composite Index [SHK]

One of the most powerful indicator based and divergence strategies i have ever seen was made by Constance Brown.

The Composite Index:
The best way to think of the Composite Index as it applies to the RSI is to think of the RSI as Windows 3.0 and the Composite Index as Windows 10. Constance Brown discovered that the RSI , while it does create and detect divergences, does is not as accurate as it could be. It’s a bit of an oxymoron to say this but the RSI is a momentum indicator without any momentum calculation attached to it. The RSI actually misses a significant amount of important moves and even generates some bad moves. What Constance Brown did with the RSI is to input a momentum calculation within the RSI itself.

Usage:
1. Check hidden and regular divergences on RSI+COMPOSITE_INDEX and PRICE+COMPOSITE_INDEX.
2. After finding divergence wait for COMPOSITE_INDEX to cross under/over it's moving averages to trigger.

Useful Note:
"RSI overbought/oversold as filter", "RSI and COMPOSITE_INDEX trendline as trigger", "RSI 50 Over/Under as trend direction detection", ... can be add to this strategy.


Enjoy!
Versionshinweise:
  • Updated to Pine v4
  • Red trigger Line changed to orange
  • Horizontal range added to CI
Versionshinweise: - Bug fixed
Open-source Skript

Ganz im Sinne von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es verstehen und überprüfen können. Ein Hoch auf den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Publikation unterliegt den Hausregeln. Sie können das Skript den Favoriten hinzufügen, um es auf dem Chart zu verwenden.

Möchten Sie dieses Skript auf einem Chart verwenden?

Kommentare

Sometimes it's good to put a link to the original indicator that you copied...

+7 Antworten
shayankm mrhashem
@mrhashem, The script which you call as original is a copy of Constance Brown formula. In the first line I gave all credits to "Constance Brown".
+8 Antworten
kurohyo shayankm
@shayankm, can this be coded for trading with FXCM trading station platform?
+1 Antworten
@shayankm I am using composit index for last 2 days and found it to be very useful, though I have not understood it properly ( I am senior citizen ). Can you please explain what is thick Red line and thin red and green lines? And also how does one correctly interpret. I am just following thick red line now.
+6 Antworten
shayankm Vijaykhanna
@Vijaykhanna,
Thick red line = Composite Index
Thin red line = Faster moving average on composite index
Thin green line = Slower moving average on composite index

Please read description of the indicator above.
+3 Antworten
How to enable arrows?
+2 Antworten
so thanks dear shayan
+2 Antworten
Amazing! thanks for sharing bro!
+2 Antworten
Amazing work ! Thank you for being so kind to share your genius work :)
+2 Antworten
shayankm PaulLucky
@PaulLucky, Don't mention it, Hope you enjoy
Antworten