Composite index

mladen · #1 (**permalink**) 06-27-2009, 06:00 PM

Two friends of mine directed me in this direction : it turned out that we do not have a Constance Browns composite index indicator coded .... yet
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A quote from Constance Brown regarding composite index :

Quote:

The Composite Index was developed to solve the divergence failure problem in the RSI, but its ability to provide specific horizontal levels of support within the indicator adds to its value. The Composite Index takes the normalized formula of RSI and removes the normalization range restrictions. In Figure 5.7, the divergence to RSI in the Composite Index is seen at points N and P. The formula for the Composite Index uses an embedded momentum calculation with a short-term RSI smoothed.

So here it is.
Formula used is the one that comes in the "Breakthroughs in Technical Analysis : New Thinking from Worlds Top Minds" chapter dedicated to Constance Brown (formula can be found at page 81 of that book)

mladen · #2 (**permalink**) 06-27-2009, 06:22 PM

Some links that might be useful in using the composite index :
The Aerodynamics Investments Inc site is the official Constance Brow site. So, instead of explaining, I thought that it would be useful to seek additional info there (the Composite index gallery is quite good)

The chart gallery : http://www.aeroinvest.com/chartgallery.htm
The composite index chart gallery : COMPOSITE INDEX - Aerodynamic Investments Inc

eKetas · #3 (**permalink**) 06-27-2009, 09:32 PM

Quote:

Originally Posted by mladen

Some links that might be useful in using the composite index :
The Aerodynamics Investments Inc site is the official Constance Brow site. So, instead of explaining, I thought that it would be useful to seek additional info there (the Composite index gallery is quite good)

The chart gallery : http://www.aeroinvest.com/chartgallery.htm
The composite index chart gallery : COMPOSITE INDEX - Aerodynamic Investments Inc

Thanks for the indicator and gann/fibonacci info.
We all will save 400$ (no need to buy). mhhh.. free things are so sweet