Constance Brown Composite Index, RSI, DOSC Exploration
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Preliminary exploration of Constance Brown's trading style with a focus on divergence plotting with the Composite Index, RSI + Averages, and the Derivative Oscillator.
first, hide the price action + derivative oscillator so they're not visible, and only the RSI + CBCI are visible:
next, plot vertical lines where the CBCI (gray) crosses above or below it's two moving averages (sma11&33, aqua and green):
* then, use the CBCI to spot divergences on the RSI, as an indicator of an indicator to spot divergences.
The CBCI was designed to have momentum + not be range bound and to work to spot divs on the RSI, as follows:
* then draw the vertical lines from the crossovers on the price action/candlesticks and unhide the chart:
* label/check each divergence and unhide the derivative oscillator:
* then, mark on the derivative oscillator zero line crosses + directional momentum changes:
* Filter out the majority of derivative oscillator zero line crosses and directional changes that occur during div periods that don't overlap:
* Finally, filter derivative oscillator signals to congruence to divergence type and plot on chart: