Working with the CCI indicator
We continue to consider methods of working with CCI indicator. This time we will consider five more approaches that can qualitatively increase the profitability of working with this trading instrument.
Situation #24
If on the last three runs the CCI(5) indicator has "fork" property: the movement directed downward, and at the same time strictly on this "fork" there is a "breakdown with price" property (by the last three candles), also directed downward, then for the indicator CCI(5) there is a system signal, directed down.
Figure 1 shows two properties:
- On the last three runs, there is a "fork" figure pointing downward;
- "breakout with price" (divergence): on the last run the indicator has an upper direction, it means that the property gives a lower signal.
Situation #25
If the last three runs have CCI(5) indicator there is a "fork" property: a move directed upwards, and at the same time strictly on this "fork" there is a "price breakdown" property (by the last three candles), also directed upwards, then for the CCI indicator (5) there is a system signal directed upwards up.
Figure 2 shows two properties:
- On the last three runs there is a "fork" figure pointing upward;
- "Breakout with price" (divergence): on the last run, the indicator has the upper direction, so the property gives the upper signal.
Situation #26
When the indicators move up on the last run:
- the slope of the fast line (CCI indicator (5)) is less than the slope of the slow line (CCI indicator (8));
- the slope of the fast line (CCI indicator (8)) is less than the slope of the slow line (CCI indicator (13)).
Conclusion: when these two properties are present at the same time, there is a system signal for the CCI(5) indicator, which is directed downward. The situation also works with CCI(8), CCI(13), CCI(21) for the CCI(8) indicator.
Situation #27
When the indicators move down on the last run:
- the slope of the fast line (indicator CCI(5)) is less than the slope of the slow line (indicator CCI(8));
- the slope of the fast line (indicator CCI(8)) is less than the slope of the slow line (indicator CCI(13)).
Conclusion: with the simultaneous presence of these two properties, there is a system signal for the CCI(5) indicator, directed up. The situation also works with CCI(8), CCI(13), CCI(21) for the CCI(8) indicator.
Situation #28
When the indicators move up on the last run:
- the gap between the CCI(5) indicator and the CCI(8) indicator is smaller than the gap between the CCI(8) indicator and the CCI(13) indicator;
- gap between CCI indicator(8) and the CCI(13) indicator is smaller than the gap between the CCI(13) indicator and the CCI(21) indicator.
Conclusion: when these two properties are present simultaneously, there is a systemic signal directed down.
Example #11: six-hour chart of the euro (see Fig. 11). Calculation of the candle, which will be from 12.00 to 18.00 (30.09.2009), according to the system of indicators CCI.
The symbols in Figure 3:
- The bold line is the CCI(21) indicator;
- dotted line with dots - CCI(5) indicator;
- the thin line is the CCI(8) indicator;
- thin line with dots - CCI indicator(13);
- thin line on the price - the average price equal to (H+L+C) / 3.
The values of indicators and the averaged price of the last six-hour candles at the time of closing are entered in the table № 1.
The notation in the table: the average price is equal to (H + L + C) / 3, where H / L / C - the parameters of the candle.
Table #2 gives the calculated slopes of indicators and prices by run.
The slope of the CCI(5) indicator on run #1 is calculated as follows:
From the indicator value on the candle at 12.00 of 30.09.2009 (127.86) subtracted the indicator value on the candle 06.00 of 30.09.2009 (70.99). The resulting difference (56.87?) is entered in the column № 1. The arrow indicates the direction of the indicator on this run.
Properties
1. On the last run closed candle 12.00 of 30.09.2009:
- the slope of the fast line (indicator CCI(5) has a slope of 56.87?) less than the slope of the slow line (indicator CCI(8) has a slope of 74.04?);
- the slope of the fast line (indicator CCI(8) has a slope of 74.04?) is less than the slope of the slow line (indicator CCI(13) has a slope of 78.09?).
Conclusion: if these two properties are present at the same time, there are trading signalforwarded down.
Bottom line: the gap between the CCI(5) indicator and the CCI(8) indicator (33.15) is smaller than the gap between the CCI(8) indicator and the CCI(13) indicator (49.87), and the gap between the CCI(8) indicator and the CCI(13) indicator (49.87) is smaller than the gap between the CCI(13) indicator and the CCI(21) indicator (68.21).
Conclusion: with these three properties present at the same time, there is a downward systemic signal.
Situation #29
When the indicators move down on the last run:
- the gap between the CCI(5) indicator and the CCI(8) indicator is smaller than the gap between the CCI(8) indicator and the CCI(13) indicator;
- the gap between the CCI(8) indicator and the CCI(13) indicator is smaller than the gap between the CCI(13) indicator and the CCI(21) indicator.
Conclusion: with the simultaneous presence of these two properties, there is a system signal pointing upward.