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 #5. System signal 4 (there is a tolerance of ± 10 %)
On the last run there is the following situation:
– CCI indicator(5), moving downward, reached or crossed the -150% boundary;
– индикатор ССI(8), двигаясь вниз, достиг или пересёк границу -200%;
– индикатор ССI(13), двигаясь вниз, достиг или пересёк границу -250%.
The CCI indicator system gives a strong signal upwards. If the CCI(13) indicator does not "reach" the boundary (-250%) even with the tolerance, and at the same time on the last run it has the "speed" property, directed upward, then most likely there will be another black candle.
Example No. 4: Daily chart (see Fig. 1).
Calculation of the daily candle on Tuesday, January 22, 2008.
The symbols in the figure:
– жирная линия – CCI indicator(13);
– пунктирная линия с точками – индикатор ССI(5);
– тонкая линия – индикатор ССI(8).
On the last closed candle from 21.01.2008:
– индикатор ССI(5), двигаясь вниз, достиг значения -140.49%;
– индикатор ССI(8), двигаясь вниз, достиг значения -162.17%;
– индикатор ССI(13), двигаясь вниз, достиг значения -229.19%.
Indicators CCI(5) and CCI(13), taking into account the tolerances simultaneously reached their minimum values. Indicator CCI(8) did not reach their minimum values, even taking into account the doubling of tolerances (-194.6) (when there are standard situations on two or three indicators tolerances can be doubled). CCI indicator system gives a signal upwards, but a confirmation is required. As a confirmation can act as a calculation of the system RSI.
Situation #6. Combination of properties
– Индикатор ССI(13) на последнем прогоне, двигаясь вниз, достиг значения -250% (для данной границы есть допуск ± 10%);
– индикаторы ССI(8) и ССI(5) одновременно на этом же прогоне начали двигаться вверх;
– индикатор ССI(8) находится ниже индикатора ССI(5).
This combination of properties gives the top job.
Example No. 5: Daily chart (see Fig. 2).
Calculation of the daily candle system SSI indicators on October 23, 2008. Table 4 shows the indicator parameters and closing values of the candles.
The symbols in Table 2:
– даны параметры индикаторов и усредненной точки на момент закрытия свечей;
– усредненная цена равная (H+L+C) / 3, где H, L, C – параметры свечи.
The symbols in the figure:
– жирная линия – индикатор ССI(13);
– пунктирная линия с точками – индикатор ССI(5);
– тонкая линия – индикатор ССI(8).
The slope of the price and indicators on the last runs are shown in Table 3.
The slope (difference) of the CCI(5) indicator in the column (run 1, table 3) is calculated as follows: the value of the CCI(5) indicator on the closed candlestick of October 22, 2008 is subtracted from the value of the CCI(5) indicator on the candlestick of October 21, 2008 and the obtained value is placed in the column "run 1". The arrow indicates the direction of the indicator on this run, etc.
The CCI system has a layout on the last run:
The CCI(5) indicator turned around after reaching the low (-160.53), and the first run went up, reaching the value (-129.47);
2. SSI(8) after reaching the low (-197.76) turned around and the first run went up, reaching the value (-181.85);
3. The CCI(13) indicator continues to move downward and reaches (-248.36), i.e. almost reaches the -250% boundary.
In this case there is a high probability that the next candle will be white, despite the presence of lower trend.
This option, assuming the week is in a downtrend, suggests that another candle will be black.
Situation #7. System signal 6 (there is a tolerance of ± 10 %)
On the last run there is the following situation:
– индикатор ССI(5), двигаясь вверх, достиг или пересёк границу 150%;
– индикатор ССI(8), двигаясь вверх, достиг или пересёк границу 200%;
– индикатор ССI(13), двигаясь вверх, достиг или пересёк границу 250%.
The CCI indicator system gives a strong downward signal.
If the CCI(13) indicator does not "reach" the boundary of 250%, even taking into account the tolerance and at the same time on the last run it has the "speed" property, directed downward, then most likely there will be another white candle.
Example № 6: Daily chart Calculation of the daily candle on 22.05.2008 (Thursday) (see Fig. 3).
ADXR indicator showed that this day is best calculated with the help of oscillators. The CCI system is considered.
On the last closed candle from 21.05.2008:
– индикатор ССI(5), двигаясь вверх, достиг значения 141.04%;
– индикатор ССI(8), двигаясь вверх, достиг значения 196.45%;
– индикатор ССI(13), двигаясь вверх, достиг значения 238.45%.
Все индикаторы ССI с учётом допусков одновременно достигли своих максимальных значений. Система индикаторов ССI даёт сильный сигнал вниз.
Условные обозначения на рисунке 6:
– жирная линия – индикатор ССI(13);
– пунктирная линия с точками – индикатор ССI(5);
– тонкая линия – индикатор ССI(8).
Мы продолжим рассматривать примеры работы сигналов индикатора CCI в 57 номере журнала ForTrader.org.