Indicators: Constance Brown Composite Index & RSI+Avgs

I am a big fan of Constance Brown. Her book "Technical Analysis for Trading Professionals" is an absolute classic (get the 2nd edition).

I have included here 2 of the indicators she uses in all her charts.

Composite Index
This is a formula Ms Brown developed (Cardwell may not agree!) to identify divergence failures with in the RSI . This also highlights the horizontal support levels with in the indicator area.

This index removes the normalization range restrictions in RSI . This means it is not bound with in 0-100 range. Also, this has embedded momentum calculation in it.

The fine nuances of this indicator are not documented well enough, if you find some good documentation, do let me know. Always use this with RSI (like the next one).

This is plain 14 period RSI with a 9-period EMA and 45-period SMA overlaid.

List of my free indicators:
List of my indicators at Appstore:

本著真正的TradingView精神,該腳本的作者將其開源發布,以便交易者可以理解和驗證它。為作者喝彩吧!您可以免費使用它,但在出版物中重複使用此代碼受網站規則的約束。 您可以收藏它以在圖表上使用。



// @author LazyBear
// Code from book "Breakthroughs in Technical Analysis" pg 95. 
// If you use this code in its orignal/modified form, do drop me a note. 
study(title="Constance Brown Composite Index [LazyBear]", shorttitle="CBIDX_LB")
src = close
rsi_length=input(14, title="RSI Length")
rsi_mom_length=input(9, title="RSI Momentum Length")
rsi_ma_length=input(3, title="RSI MA Length")
ma_length=input(3, title="SMA Length")

r=rsi(src, rsi_length)
rsidelta = mom(r, rsi_mom_length)
rsisma = sma(rsi(src, rsi_ma_length), ma_length)

plot(s, color=red, linewidth=2)
plot(sma(s, fastLength), color=green)
plot(sma(s, slowLength), color=orange)