LazyBear

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
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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).

RSI+Avgs
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This is plain 14 period RSI with a 9-period EMA and 45-period SMA overlaid.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?
//
// @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")
fastLength=input(13)
slowLength=input(33)

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

plot(s, color=red, linewidth=2)
plot(sma(s, fastLength), color=green)
plot(sma(s, slowLength), color=orange)
List of my free indicators: http://bit.ly/1LQaPK8
List of my indicators at Appstore: http://blog.tradingview.com/?p=970

Comments

Hi there, are you aware of the fact that Andrew Cardwell copywrited this indicator a long time ago?
+14 Reply
How do I use this indicator? Do I need to be a pro user to trading view?
+7 Reply
LazyBear henjiro
PRO is not needed for using these free indicators.

Use this guide to import / use custom indicators published (PDF):
https://drive.google.com/file/d/0Bx48Du_2aPFncUhIemNrZUY1dTA/edit?usp=sharing

Here's a list of all my indicators. You can use the same guide above to import/use any of these.


Reply
thank you for your info about Connie Brown composite index, however how can I incorporate to my fxcm account any tips and what is the difference between RSI and RSI+Avgs thank you
+6 Reply
any one have cfgmo indicator of cardwell
Reply
i want to revert this index to deal with the bear, how should i do ?
Reply
CBIDX_LB 14 9 3 3 13 33 WHAT DOES THAT INCLUDE? HELP ME..
Reply
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