December 2011
Intermediate to advanced
384 pages
9h 49m
English
book
Technical Analysis for the Trading Professional, Second Edition: Strategies and Techniques for Today’s Turbulent Global Financial Markets, 2nd Edition
by Constance Brown
Content preview from Technical Analysis for the Trading Professional, Second Edition: Strategies and Techniques for Today’s Turbulent Global Financial Markets, 2nd EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Chapter | 12THE COMPOSITE INDEX
Let’s get the criticism of the first edition right out of the picture up front. What’s the formula?!
The Composite Index will diverge where the RSI often fails to warn a trend reversal is approaching. The reason the Composite will pass on the warning is that it has a momentum indicator imbedded within the RSI formula. In English the steps you need are the following:
Step 1: create a 9-period momentum indicator of a 14-period RSI. Yes, it is momentum on RSI, not price. This is an indicator on an indicator.
Step 2: create a very short 3-period RSI and then a simple 3-period moving average of the 3-period RSI to smooth it slightly.
Step 3: add Steps 1 and 2 together to create the Composite Index.
Step 4: Create two ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.