REFERENCE : Technical Analysis for the Trading Professional-Constance
Brown-McGraw-Hill ISBN 0-07-012062-5
The author demonstrates how imbedding a Momentum formula within the Relative
Strength Index will significantly improve the trend reversal signal and timing characteristics of
this oscillator. She named it THE COMPOSITE INDEX and it was made public in oct 2015.See http://www.aeroinvest.com
THE COMPOSITE INDEX: A DIVERGENCE ANALYSIS STUDY
A thesis submitted in fulfillment of the requirements for the certification
MASTER OF FINANCIAL ANALYSIS (MFTA)
By
CONSTANCE M. BROWN, CMT
OCTOBER 2015
The Composite Index formula is as follows in Omega TradeStation format:
Plot1(RSIMO9+RSI3,”Plot1″);
Plot2(average((plot1),13),”Plot2″);
Plot3(average((plot1),33),”Plot3″);
The function RSIMO9 is written; RSIMO9 = MOMENTUM(RSI(CLOSE,14),9)
The second function is written RSI3=AVERAGE(RSI(CLOSE,3),3)
The use of the indicator can be found in the publication mentioned above.
Can anybody check the equivalent PRT program? I have some doubts about the bar numbering …
In attachment.
Composite index example
Setting composite index
A=RSI[14] + Average [3](RSI[3])-RSI[14](close)[9]
Return A COLOURED (0,0,0)
Sorry but your code is wrong 🙂
Considering your description, I coded this version of the Composite Index:
RSIMO9 = MOMENTUM[9](RSI[14])
RSI3=AVERAGE[3](RSI[3])
Plot1 = RSIMO9+RSI3
Plot2 = average[13](plot1)
Plot3 = average[33](plot1)
return plot1,plot2,plot3
Hi Nicolas
The formula is correct! I just decomposed the momentum formula to increase the processing speed.
Please see both formulae in attachment. I adjusted the layout of the averages in your formula for clarity purposes
All ways …
Best regards and thank you for the review
J-P
RSIMO9 = MOMENTUM[9](RSI[14])
RSI3=AVERAGE[3](RSI[3])
Plot1 = RSIMO9+RSI3
Plot2 = average[13](plot1)
Plot3 = average[33](plot1)
return plot1,plot2 coloured (0,200,100),plot3 coloured (255,0,0)
