OPEN-SOURCE SCRIPT
Constance Brown Composite Index Enhanced
What This Indicator Does
Implements Constance Brown's copyrighted Composite Index formula (1996) from her Master's thesis - a breakthrough oscillator that solves the critical problem where RSI fails to show divergences in long-horizon trends, providing early warning signals for major market reversals.
The Problem It Solves
Traditional RSI frequently fails to display divergence signals in Global Equity Indexes and long-term charts, leaving asset managers without warning of major price reversals. Brown's research showed RSI failed to provide divergence signals 42 times across major markets - failures that would have been "extremely costly for asset managers."
Key Components
Composite Line: RSI Momentum (9-period) + Smoothed RSI Average - the core breakthrough formula
Fast/Slow Moving Averages: Trend direction confirmation (13/33 periods default)
Bollinger Bands: Volatility envelope around the composite signal
Enhanced Divergence Detection: Significantly improved trend reversal timing vs standard RSI
Research-Proven Performance
Based on Brown's extensive study across 6 major markets (1919-2015):
42 divergence signals triggered where RSI showed none
33 signals passed with meaningful reversals (78% success rate)
Only 5 failures - exceptional performance in monthly/2-month timeframes
Tested on: German DAX, French CAC 40, Shanghai Composite, Dow Jones, US/Japanese Government Bonds
New Customization Features
Moving Average Types: Choose SMA or EMA for fast/slow lines
Optional Fills: Toggle composite and Bollinger band fills on/off
All Periods Adjustable: RSI length, momentum, smoothing periods
Visual Styling: Customize colors and line widths in Style tab
Default Settings (Original Formula)
RSI Length: 14
RSI Momentum: 9 periods
RSI MA Length: 3
SMA Length: 3
Fast SMA: 13, Slow SMA: 33
Bollinger STD: 2.0
Applications
Long-term investing: Monthly/2-month charts for major trend changes
Elliott Wave analysis: Maximum displacement at 3rd-of-3rd waves, divergence at 5th waves
Multi-timeframe: Pairs well with MACD, works across all timeframes
Global markets: Proven effective on equities, bonds, currencies, commodities
Perfect for serious traders and asset managers seeking the proven mathematical edge that traditional RSI cannot provide.
Implements Constance Brown's copyrighted Composite Index formula (1996) from her Master's thesis - a breakthrough oscillator that solves the critical problem where RSI fails to show divergences in long-horizon trends, providing early warning signals for major market reversals.
The Problem It Solves
Traditional RSI frequently fails to display divergence signals in Global Equity Indexes and long-term charts, leaving asset managers without warning of major price reversals. Brown's research showed RSI failed to provide divergence signals 42 times across major markets - failures that would have been "extremely costly for asset managers."
Key Components
Composite Line: RSI Momentum (9-period) + Smoothed RSI Average - the core breakthrough formula
Fast/Slow Moving Averages: Trend direction confirmation (13/33 periods default)
Bollinger Bands: Volatility envelope around the composite signal
Enhanced Divergence Detection: Significantly improved trend reversal timing vs standard RSI
Research-Proven Performance
Based on Brown's extensive study across 6 major markets (1919-2015):
42 divergence signals triggered where RSI showed none
33 signals passed with meaningful reversals (78% success rate)
Only 5 failures - exceptional performance in monthly/2-month timeframes
Tested on: German DAX, French CAC 40, Shanghai Composite, Dow Jones, US/Japanese Government Bonds
New Customization Features
Moving Average Types: Choose SMA or EMA for fast/slow lines
Optional Fills: Toggle composite and Bollinger band fills on/off
All Periods Adjustable: RSI length, momentum, smoothing periods
Visual Styling: Customize colors and line widths in Style tab
Default Settings (Original Formula)
RSI Length: 14
RSI Momentum: 9 periods
RSI MA Length: 3
SMA Length: 3
Fast SMA: 13, Slow SMA: 33
Bollinger STD: 2.0
Applications
Long-term investing: Monthly/2-month charts for major trend changes
Elliott Wave analysis: Maximum displacement at 3rd-of-3rd waves, divergence at 5th waves
Multi-timeframe: Pairs well with MACD, works across all timeframes
Global markets: Proven effective on equities, bonds, currencies, commodities
Perfect for serious traders and asset managers seeking the proven mathematical edge that traditional RSI cannot provide.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
🎯 Download my free guide! 10 Chart Patterns that Make Money
💰 Recent Winners: APPS +250%, NVDA +200%, SMCI +240%, HIMS +60%
👉 profitpunch.org
💰 Recent Winners: APPS +250%, NVDA +200%, SMCI +240%, HIMS +60%
👉 profitpunch.org
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
🎯 Download my free guide! 10 Chart Patterns that Make Money
💰 Recent Winners: APPS +250%, NVDA +200%, SMCI +240%, HIMS +60%
👉 profitpunch.org
💰 Recent Winners: APPS +250%, NVDA +200%, SMCI +240%, HIMS +60%
👉 profitpunch.org
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.