Creating a Composite Indicator for Trading — A Step-by-Step Guide.

Coding a Custom Equally Weighted Technical Index in Python.

Composites are indices composed of underlying indicators where an aggregate decision can be made when a certain threshold is surpassed. For example, if we have three models where two models say yes and one model is neutral, then the aggregate decision is yes due to the number and due to the fact that there is no contradiction from the third model. 

Numer…