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Brown Composite Index Pro
TITLE:
Brown Composite Index Pro — Divergences, Historical Levels & Timing
DESCRIPTION:
Brown Composite Index Pro implements Constance Brown's Composite Index from "Technical Analysis for the Trading Professional" (2nd ed., Ch. 12), with the reading techniques she describes throughout the book.
WHAT THE COMPOSITE INDEX IS
Brown created it because "the Composite Index will diverge where the RSI often fails to warn a trend reversal is approaching." It embeds momentum inside the RSI:
• Composite = 9-period momentum of RSI(14) + 3-period SMA of RSI(3)
• Plotted with 13- and 33-period simple moving averages
Because it is not bounded between 0 and 100, the RSI range rules do not apply. Brown's point is that "the greatest value of any oscillator is its horizontal displacement from the zero line" — how high or low it goes compared with its own past.
WHAT IT SHOWS
• Composite line colored by its position against both averages, with a ribbon between the 13 and 33 SMAs.
• Regular divergences with price (▲ Bull / ▼ Bear).
• Hidden divergences with price (H Bull / H Bear) — trend continuation.
• Composite vs RSI divergences (CI>RSI / CI<RSI): the warning the RSI alone misses, and one of Brown's main reasons for the formula.
• ★ Strong divergences: pivots fewer than 9 bars apart (Ch. 10).
• Historical levels: displacement levels where the Composite has reversed repeatedly, drawn with their touch count. A new swing at one of them is labeled "⟂ Res" or "⟂ Sup" — Brown's high-probability double test.
• Historic extremes: the Composite's record high and low. A new extreme is labeled, and the old one stays on the chart because, in Brown's experience, it is nearly always retested.
• Average-crossover tests: "✖ Sell" when the Composite rallies into its averages as the fast crosses down; "✖ Buy" when it holds support as they cross up. Brown notes a sharp move often follows.
• ⏱ Two-step timing (Ch. 10): the Composite crossing its averages is the early warning; the RSI crossing its own average in the same direction within N bars is the timing signal.
• ⚖ Price not following (Ch. 4): marks bars where the Composite moves strongly but price barely moves — a sign you are on the wrong side if positioned with the oscillator.
• Higher-timeframe Composite trend (auto 4× your chart, or custom).
DASHBOARD
Composite value, position vs slow SMA, ribbon direction, higher-timeframe trend, nearest historical level, extremes and last signal. Five themes, Unicode font styles, vertical or horizontal layout, eight positions, and per-row on/off.
HOW TO USE IT
Use it with an RSI, not instead of one — Brown always displays them together.
1. Let the RSI define the trend and where pullbacks should stop.
2. Watch the Composite for divergence with price or with the RSI. Brown: "the Composite Index warns when the RSI will fail to detect a market reversal before the failure."
3. Give extra weight to swings at historical levels and to ★ strong divergences.
4. Time entries with the two-step signal: Composite cross first, RSI cross second.
5. Brown's order of operations: "price target comes first and permission always comes second from the oscillators." Use this indicator for permission, not targets.
Designed to pair with Brown RSI Pro.
ALERTS
Create Alert → choose this indicator → "Any alert() function call". One alert covers every event enabled in the Alerts settings, including the higher-timeframe state in each message. Individual alert conditions are also available. Alerts fire on bar close.
NOTES
• Swing-based signals confirm a few bars after the swing (the "right" pivot setting).
• Historical levels and extremes only cover the data loaded on your chart; load more history for better levels.
CREDITS
The Composite Index was developed by Constance M. Brown, who credits Manning Stoller with teaching her to combine indicators. Formula and methods from "Technical Analysis for the Trading Professional," 2nd ed. (McGraw-Hill), Ch. 4, 5, 6, 10 and 12.
This script is for education and analysis only and is not financial advice. Test it on your own markets before relying on it.
Brown Composite Index Pro — Divergences, Historical Levels & Timing
DESCRIPTION:
Brown Composite Index Pro implements Constance Brown's Composite Index from "Technical Analysis for the Trading Professional" (2nd ed., Ch. 12), with the reading techniques she describes throughout the book.
WHAT THE COMPOSITE INDEX IS
Brown created it because "the Composite Index will diverge where the RSI often fails to warn a trend reversal is approaching." It embeds momentum inside the RSI:
• Composite = 9-period momentum of RSI(14) + 3-period SMA of RSI(3)
• Plotted with 13- and 33-period simple moving averages
Because it is not bounded between 0 and 100, the RSI range rules do not apply. Brown's point is that "the greatest value of any oscillator is its horizontal displacement from the zero line" — how high or low it goes compared with its own past.
WHAT IT SHOWS
• Composite line colored by its position against both averages, with a ribbon between the 13 and 33 SMAs.
• Regular divergences with price (▲ Bull / ▼ Bear).
• Hidden divergences with price (H Bull / H Bear) — trend continuation.
• Composite vs RSI divergences (CI>RSI / CI<RSI): the warning the RSI alone misses, and one of Brown's main reasons for the formula.
• ★ Strong divergences: pivots fewer than 9 bars apart (Ch. 10).
• Historical levels: displacement levels where the Composite has reversed repeatedly, drawn with their touch count. A new swing at one of them is labeled "⟂ Res" or "⟂ Sup" — Brown's high-probability double test.
• Historic extremes: the Composite's record high and low. A new extreme is labeled, and the old one stays on the chart because, in Brown's experience, it is nearly always retested.
• Average-crossover tests: "✖ Sell" when the Composite rallies into its averages as the fast crosses down; "✖ Buy" when it holds support as they cross up. Brown notes a sharp move often follows.
• ⏱ Two-step timing (Ch. 10): the Composite crossing its averages is the early warning; the RSI crossing its own average in the same direction within N bars is the timing signal.
• ⚖ Price not following (Ch. 4): marks bars where the Composite moves strongly but price barely moves — a sign you are on the wrong side if positioned with the oscillator.
• Higher-timeframe Composite trend (auto 4× your chart, or custom).
DASHBOARD
Composite value, position vs slow SMA, ribbon direction, higher-timeframe trend, nearest historical level, extremes and last signal. Five themes, Unicode font styles, vertical or horizontal layout, eight positions, and per-row on/off.
HOW TO USE IT
Use it with an RSI, not instead of one — Brown always displays them together.
1. Let the RSI define the trend and where pullbacks should stop.
2. Watch the Composite for divergence with price or with the RSI. Brown: "the Composite Index warns when the RSI will fail to detect a market reversal before the failure."
3. Give extra weight to swings at historical levels and to ★ strong divergences.
4. Time entries with the two-step signal: Composite cross first, RSI cross second.
5. Brown's order of operations: "price target comes first and permission always comes second from the oscillators." Use this indicator for permission, not targets.
Designed to pair with Brown RSI Pro.
ALERTS
Create Alert → choose this indicator → "Any alert() function call". One alert covers every event enabled in the Alerts settings, including the higher-timeframe state in each message. Individual alert conditions are also available. Alerts fire on bar close.
NOTES
• Swing-based signals confirm a few bars after the swing (the "right" pivot setting).
• Historical levels and extremes only cover the data loaded on your chart; load more history for better levels.
CREDITS
The Composite Index was developed by Constance M. Brown, who credits Manning Stoller with teaching her to combine indicators. Formula and methods from "Technical Analysis for the Trading Professional," 2nd ed. (McGraw-Hill), Ch. 4, 5, 6, 10 and 12.
This script is for education and analysis only and is not financial advice. Test it on your own markets before relying on it.
Информация о релизе
What I changed: the extreme lines now start from the date and time of the record instead of a bar count, so it doesn’t matter how far back the record is
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.