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Constance Brown Composite Index - in candle stick
Updated
Constance Brown Composite Index was developed by Miss Brown.
It is an alternative to the classic RSI , but responds better regardless of trending or ranging markets.
If you are not familiar with this tool, you could read her book "Technical Analysis for the Trading Professional, Second Edition". Some free materials can also be found on the web explaining the core concept of this index.
I find it offer more precise, successful and early detection of regular or hidden divergences.
I have highlighted examples of a few divergences on NQ future. It did provide a few hundreds points within only 2 trading sessions. Green and Red arrows show the areas where I took the trades.
The expected price movement has a much higher chance to materialize when the divergence starts from overbought or oversold area.
- ability to display the index in form of candles or a simple line.
- option to show higher timeframe data
For me, it's a good companion on 15, 60 and 240 min chart.
I use it on futures like ES, NQ and RTY but didn't test too much on other instruments.
I like to see it in the form of candles because you could spot reversal candle in overbought/sold areas giving more confirmation that the divergence is well established.
I don't recommend making trades only on this indicators, it's your responsibility to manage your risk and decision.
I hope you find it useful and glad to read your comments
Happy trading!
It is an alternative to the classic RSI , but responds better regardless of trending or ranging markets.
If you are not familiar with this tool, you could read her book "Technical Analysis for the Trading Professional, Second Edition". Some free materials can also be found on the web explaining the core concept of this index.
I find it offer more precise, successful and early detection of regular or hidden divergences.
I have highlighted examples of a few divergences on NQ future. It did provide a few hundreds points within only 2 trading sessions. Green and Red arrows show the areas where I took the trades.
The expected price movement has a much higher chance to materialize when the divergence starts from overbought or oversold area.
- ability to display the index in form of candles or a simple line.
- option to show higher timeframe data
For me, it's a good companion on 15, 60 and 240 min chart.
I use it on futures like ES, NQ and RTY but didn't test too much on other instruments.
I like to see it in the form of candles because you could spot reversal candle in overbought/sold areas giving more confirmation that the divergence is well established.
I don't recommend making trades only on this indicators, it's your responsibility to manage your risk and decision.
I hope you find it useful and glad to read your comments
Happy trading!
Release Notes
Making this indicator even more powerful and increase success rate !Added an auto higher timeframe of the same indicator in form of a simple line. You should look for divergences mostly when this higher timeframe line in around oversold or overbought areas. Other instruction in published picture
Release Notes
Minor bug fixesRelease Notes
minor bug fixes
Disclaimer
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