Working with the CCI indicator

We continue to consider the principles of working with the CCI indicator. This time we will pay our attention to three more variants of standard situations with the CCI indicator, as well as the rules for determining market signals using them.

Situation #8. Combination of properties

- indicator CCI(13) on the last run, moving up, reached the value of 250% (for this boundary there is a tolerance of ± 10%);
- CCI(8) and CCI(5) indicators started moving down at the same time on the same run;
- the CCI(8) indicator is above the CCI(5) indicator.
This combination of properties gives the lower work.

Example № 1: weekly chart. Calculation of the weekly candle from (01- 05) October 2007 by CCI indicator system.

Legend:
- The bold line is the CCI indicator(13);
- thin line - CCI indicator(8);
- dotted line with dots - CCI(5) indicator.

On the closed candle of September 28, 2007:
- CCI indicator (5), moving downward, reached the value -118.01%;
- The CCI(8) indicator, moving downward, reached the value of -153.83%;
- CCI(13) indicator, moving upward, reached the value -225.80%.

The CCI indicator system gives a high probability that the next candle will be black. Here, as a confirmation of this hypothesis, there is a property of "three consecutive white candles", which gives the lower signal.

Example #2. Calculation of the weekly candle for 08 - 12.10.2007 on the system of indicators CCI.

On the last closed black candle from 05.10.2007:
–    CCI indicator(5), moving down, reached the value of 67.46%;
- indicator CCI(8), moving down, reached the value of 95.45%;
- indicator CCI(13), moving down, reached the value of 147.30%.

If, after a complete white candle, on the next black candle (the average price went down), all the indicators went down and CCI(13) ? > CCI(8) ? > CCI(5) ? (this sequence is mandatory), then there is a high probability that the next candle from (08 - 12).10.2007 will white (See situation #9).

Situation #9

Reaching the indicator CCI(5) of ± 150% (tolerance ± 10 %) is always and on any graph is a strong signal directed to the zero boundary. In this case, the CCI(5) indicator is not calculated, and the color of the next candle is determined only by the CCI(8) indicator.

Situation #10

Reaching the indicator CCI(8) of ± 200 % (tolerance of ± 10 %) is always and on any graph a strong signal towards the zero boundary. In this case calculation indicator CCI(8) is not made, and the color of the next candle is determined only by the indicator CCI(13).

Situation #11

If, after a complete white candle, on the next candle, the average price continues to go up, and the indicators went down and SSI(13) ? > CCI(8) ? > CCI(5) ? (this order is mandatory), then there is a high probability that the next candle will be white. The property is working if the "heavy graph" gives the top work (see Example #1 of Figure 1).

Situation #12

If, after a full black candle, on the next candle the average price continues to go down, and all the indicators went up, and CCI (13)? < SSI (8)? < SSI (5)? (this order is mandatory), then there is a high probability that the next candle will again black. The property is workable if the "heavy graph" gives the lower work.

Situation #13

If there are the following conditions on the last run:
- four indicators go down: CCI(5)?, CCI(8)?, CCI(13)?, CCI(21)? - the sequence can be any;
- any three indicators must have the "velocity" property pointing upwards.

- indicator CCI(5) ? 90%;
- indicator CCI(8) ? 80%;
- indicator CCI(13) ? 70%;
- CCI indicator(21) ? 60%.

The "speed" property is always directed in the opposite direction from the movement of the indicator on the last run.

Situation #14. "Three speeds."

If there are the following conditions on the last run:
- indicators go up: CCI(5) ?, CCI(8) ? , SSI(13) ? , SSI(21) ?
- necessarily each indicator has a "velocity" property pointing downward.

That is to say. system signal will be directed to down, regardless of the real direction of the "heavy" chart (only for this indicator).

The following combinations work:
For "pivot points" indicator CCI(5), the following indicators must have "velocity" properties directed downwards: CCI(5)?, CCI(8)? , CCI(13)?
For "pivot points" of the CCI(8) indicator, the following indicators (CCI(8)?, CCI(13)? , CCI(21)?).

Situation #15. "Two Boundaries."

If on the last closed candle indicator CCI(5) and any other indicator from the CCI system simultaneously reach two boundaries (these can be any two boundaries: ± 50 %, ± 100%, 0%), then there is a property against the movement of the CCI(5) indicator on the last run. The tolerance of this property is ± 5% from any boundary. Indicators must necessarily move in the same direction on the last run. The simultaneous touching of the boundaries by three indicators increases the tolerance to 8%.

Example #3: six-hour graph (European time), parsing the "two boundaries" property and the "three speeds" property.

Legend:
- bold line - CCI indicator (13);
- thin line - CCI indicator (8);
- dotted line with dots - CCI indicator (5).

Table 1 shows the parameters of the indicators and the values of the average price.

Legend:
- The parameters of the indicators and the averaged point at the time of closing of the candles are given;
- the average price is equal to (H+L+C) / 3, where H / L / C - parameters of the candle.
- On the last closed candle (time 06.00 on 10.02.2009):
o CCI(5) indicator touched the boundary (-100%); if the boundary touches not two but three indicators, the tolerance increases to 8%;
o The CCI(8) indicator touched the border (-50%), taking into account the tolerance;
o The CCI(13) indicator touched the border (0%), taking into account the tolerance;
o the indicators go one way, downwards.

Bottom line:

1. For CCI(5) indicator has the property of "two boundaries" pointing upwards;
2. for CCI(8) indicator has the property of "two boundaries" pointing upwards.

On the run between the candles of 10.02.2009 (24.00) and 09.02.2009 (06.00):
–   CCI indicator(5) has a slope equal to (-106.30) - (71.57) = 177.87?
–    CCI indicator(8) has a slope equal to (-46.10) - (95.08) = 141.18?
–    CCI indicator(13) has a slope equal to (-04.04) - (132.39) = 136.243?
Each of the three indicators has a "velocity" property pointing upwards. In the simultaneous presence of "speed" properties at three indicators, indicator CCI(5) appears system signal up (situation #14). Then a "pivot point" appears in the calculation of the CCI(5) indicator.