RSI + Composite Index [SHK]

2 Okt 2019

One of the most powerful indicator based and divergence strategies i have ever seen was made by Constance Brown.

The Composite Index:
The best way to think of the Composite Index as it applies to the RSI is to think of the RSI as Windows 3.0 and the Composite Index as Windows 10. Constance Brown discovered that the RSI, while it does create and detect divergences, does is not as accurate as it could be. It’s a bit of an oxymoron to say this but the RSI is a momentum indicator without any momentum calculation attached to it. The RSI actually misses a significant amount of important moves and even generates some bad moves. What Constance Brown did with the RSI is to input a momentum calculation within the RSI itself.

Usage:
1. Check hidden and regular divergences on RSI+COMPOSITE_INDEX and PRICE+COMPOSITE_INDEX.
2. After finding divergence wait for COMPOSITE_INDEX to cross under/over it's moving averages to trigger.

Useful Note:
"RSI overbought/oversold as filter", "RSI and COMPOSITE_INDEX trendline as trigger", "RSI 50 Over/Under as trend direction detection", ... can be add to this strategy.


Enjoy!

8 Jul 2021

Nota Keluaran

• Updated to Pine v4
  
• Red trigger Line changed to orange
  
• Horizontal range added to CI
  

8 Jul 2021

Nota Keluaran

- Bug fixed

22 Okt 2021

Nota Keluaran

• Added trigger lines for RSI
  
• Upgraded to pine v5
  

22 Okt 2021

Nota Keluaran

Updating the cover image

24 Okt 2021

Nota Keluaran

• Modified the period of RSI moving averages
  
• Added option to Enable/Disable RSI moving averages
  
• Modified RSI levels (20,33.33,40,60,66.66,80 added)
  

2 Nov 2021

Nota Keluaran

Minor UI changes

17 Mac 2022

Nota Keluaran

- Timeframe option added in the settings.