How to create a composite index/indicator

Let us create a composite indicator that measures the number of stocks that are trading above their 30-bar moving average.

Steps:

- Select "Tools" then "Composites"
- In the new form, click on the "Add" button
- Select all or some symbols then click on "Next"
- In "Formula" control, type:

composite = close > sma(30);

- Under the formula control, select:
Calculate the sum of the values added to the composite

This means that, for a particular bar/date, the value of the "composite" variable (equal to one if close is higher than SMA) is added to the global composite value for each stock.

composite = composite_stock_A + composite_stock_AA + composite_stock_AB...

- Click on "Next" then select a period and a time frame

The calculation is based on your stock data and consequently, it does not make sense to select an intraday period if you don't have intraday quotes data.

- Click on "Next", type the composite name (Example: StockAbv30) then click on "Next" to create your new composite index/indicator

How to create a composite indicator

Once the calculation is done, double click on a composite item to open the ticker symbol associated with it.

Note that each composite item creates a new symbol. The symbol name is equal to "_Composite Item Name".

Blog Post:
Composite Indicators

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