Composite index (C.Brown)

didi059 · 2018-08-07T11:28:47+00:00

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)

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08/07/2018 at 12:28 PM #77714 quote
didi059
Participant

Junior
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)
```
composite-index-exemple.pdf settngs-composite-index.pdf
08/10/2018 at 10:03 AM #77937 quote
Nicolas
Keymaster

Legend
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
```
composite-index.png
08/10/2018 at 1:58 PM #77965 quote

didi059
Participant

Junior

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

Nicolas thanked this post

CI-NICOLAS.png

08/10/2018 at 2:19 PM #77968 quote
didi059
Participant

Junior
```
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)    
```
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