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RSI Composite Index (TOS)
- Categories: Indicator, ThinkOrSwim
- Tags: Moving Average, RSI
- Type: Free
Running in conjunction with the RSI indicator, the RSI composite Index is a tool utilized to help identify divergence.
The RSI Composite Index was composed by Constance Brow in an effort to reduce the false divergence signals produced by the standard RSI indicator. The RSI Composite Index is basically an RSI momentum and a moving average RSI added to each other. Additionally, two fast- and slow-moving average curves are included. Divergence signal is confirmed when a divergence is detected on both the composite index and the RSI indicator, the buy and sell signal is generated whenever the composite index curve crosses both fast and slow signal curves. The attached screenshots demonstrate this.
Composite RSI Index Features:
- Custom data input.
- Option to smooth main curve.
- All periods for every average calculated in the indicator could be customized.
- Averaging methods for both the composite index and the signal curves could be customized.
Review the screenshots for setup options.
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