Composite Index [Auto Signals]

Composite Index [Auto Signals]

Description (描述正文):
Overview This is an enhanced version of the famous Composite Index (CI) developed by Connie Brown. While the traditional RSI is confined between 0 and 100, often masking true momentum in strong trends, the Composite Index is uncapped and incorporates a momentum component to reveal the market's true structural strength.

I have engineered this script to include Automated Signal Markers based on the crossover of the Composite Index and its Slow Moving Average. This helps traders instantly identify momentum shifts and "Timing" entries/exits without manual guesswork.

Key Features

Uncapped Momentum: Unlike RSI, the CI can go anywhere, preventing the "flattening" effect seen in strong trending markets (e.g., TSLA, NVDA).

Automated Signals:

▲ Green Triangle (Launch): Triggers when the Gray CI line crosses ABOVE the Red Slow MA. This indicates bearish momentum is exhausted and bulls are regaining control.

▼ Red Triangle (Warning): Triggers when the Gray CI line crosses BELOW the Red Slow MA. This indicates bullish momentum is failing, serving as an early warning for exits or tightening stops.

Classic Formula: Uses the standard Connie Brown parameters (14, 9, 3) + SMA smoothing for reliable divergence detection.

How to Use This Indicator This script is best used as a companion to trend indicators like TTM Squeeze or Moving Average Ribbons.

For Entries (The "Dip Buy"): In an uptrend, wait for a pullback. When the Green Triangle (▲) appears, it confirms that the pullback is over and momentum has turned back up.

For Exits (The "Top"): Look for Divergence. If Price makes a Higher High but the Composite Index makes a Lower High—followed by a Red Triangle (▼)—this is a high-probability sell signal.

The "Slow MA" Filter: The signals are generated only when the CI crosses the Slow MA (Red Line). This filters out the noise of minor fluctuations (crossing the Green line) and focuses on significant momentum changes.

Settings

RSI Period: 14 (Default)

Momentum Period: 9 (Default)

Signal Logic: Crossover/Crossunder of the Slow MA (33 Period).

Disclaimer This tool is for educational purposes only. Always combine momentum signals with price action and structure analysis.