The Commodity Channel Index (CCI) is best used with markets that display cyclical or seasonal characteristics, and is formulated to detect the beginning and ending of these cycles by incorporating a moving average together with a divisor that reflects both possible and actual trading ranges. The final index measures the deviation from normal, which indicates major changes in market trend.
To put it simply, the Commodity Channel Index (CCI) value shows how the instrument is trading relative to its mean (average) price. When the CCI value is high, it means that the prices are high compared to the average price; when the CCI value is down, it means that the prices are low compared to the average price. The CCI value usually does not fall outside the -300 to 300 range and, in fact, is usually in the -100 to 100 range.
Thank you for this indicator. It looks great. I have been backtesting it (the way I thought it worked), but although I found it worked very well sometimes, others it seemed completely off... So I think I might have got a wrong idea of the usage: would you mind doing a small explanation on how to use the indicator? I find it confusing that my candles change to the opposite color when this indicator is active.
Thanks!!
HPotter
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Hi Diego,
Candles is that change a color because this version of the indicator work as strategy. It painting candles in red when they think that now short position and green that now long position. If you would like that candles do not change a color, you should to use a simple CCI indicator. I do not use this indicator, I programmed it for education.
keithlauct
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hi there, the cci indicator is great. But how do i go about screening the entire market to let me know which stocks has met the criteria of the CCI buy signal?
hope you can help. regards, Keith
To scan the market, you'd need to use something like Stock Android app . It has a market scan feature where one can choose the indicator and it will scan the preferred exchange for you.
Or you could scan your preferred list of tickers by using python and tradingview pip package. Tradingview API provides indicators and oscillators values for current and previous day and based on those numbers, the program could alert you in some shape or form.
There are other python or go libraries that can do the job, for example Yahoo, talib, numpy. I found a lot of interesting code on github and I even created my own scanner that I published on there.
Thank you for this indicator. It looks great. I have been backtesting it (the way I thought it worked), but although I found it worked very well sometimes, others it seemed completely off... So I think I might have got a wrong idea of the usage: would you mind doing a small explanation on how to use the indicator? I find it confusing that my candles change to the opposite color when this indicator is active.
Thanks!!