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).
RSI+Avgs ---------------------------------------- This is plain 14 period RSI with a 9-period EMA and 45-period SMA overlaid.
Here's a list of all my indicators. You can use the same guide above to import/use any of these.
tradingview.com/v/4IneGo8h/
adolfopaniagua
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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
reedw7050
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Here is her 2015 thesis on it. I've not read it yet but should have a lot of documentation for you :-) aeroinvest.com/COMPOSITE_INDEX.pdf
Six_PM
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i want to revert this index to deal with the bear, how should i do ?
MONEYMENOW
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Sir, could u please do similar work of overlaying EMA9 and SMA 26 on a Ultimate oscillator. I m not a programmer. Thanks
trinhcongminh
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You are good, LazyBear
Trader_Gains
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This is the best indicator for divergence I have ever found, Amazing thank you Lazy bear it has helped my account tremendously.