4H Bear Div using RSI/CBCI updateUpdate to RSI/CBCI charting for BTCUSD on 4h - Bear Div spotted using CBCI on RSI method.
Cbci
Constance Brown Composite Index, RSI, DOSC Exploration Preliminary exploration of Constance Brown's trading style with a focus on divergence plotting with the Composite Index, RSI + Averages, and the Derivative Oscillator.
first, hide the price action + derivative oscillator so they're not visible, and only the RSI + CBCI are visible:
next, plot vertical lines where the CBCI (gray) crosses above or below it's two moving averages (sma11&33, aqua and green):
then, use the CBCI to spot divergences on the RSI, as an indicator of an indicator to spot divergences.
The CBCI was designed to have momentum + not be range bound and to work to spot divs on the RSI, as follows:
then draw the vertical lines from the crossovers on the price action/candlesticks and unhide the chart:
label/check each divergence and unhide the derivative oscillator:
then, mark on the derivative oscillator zero line crosses + directional momentum changes:
Filter out the majority of derivative oscillator zero line crosses and directional changes that occur during div periods that don't overlap:
Finally, filter derivative oscillator signals to congruence to divergence type and plot on chart:
normalization/range clamp for cbci testExample chart testing artificial range clamping for the Constance Brown Composite Index (CBCI), which was deliberately designed to not be range bound to address some of the limitations and shortcomings of the RSI formula.
Here, an artificial value clamp/range bound 0-100 is reintroduced in the name of science, to see what would happen to key crossovers on a momentum-enabled indicator with no defined "floor" or "ceiling".
In short, I'm a huge fan of the CBCI - this isn't the first, and most certainly won't be the last time I explore modifications to the composite index and RSI.
