Interesting website - mainly CCI but also NR7.
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     hershy
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Username: hershy
Post Number: 1926
Registered: 10-2002
Rating: N/A
Votes: 0
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| | Sunday, February 11, 2007 - 06:33 pm: |  
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http://madscalper.com/home.htm
"The safest way to double your money is to fold it over and put it back in your pocket."
http://members.optusnet.com.au/~hershy/
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msparks
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Username: msparks
Post Number: 789
Registered: 10-2004
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| | Sunday, March 04, 2007 - 09:59 pm: |
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Found this to be a good explanation of the CCI indicator.
The CCI itself is a momentum indicator. Such indicators all work in the same basic fashion - they plot the difference between a "fast" measure of price and a "slow" measure. The MACD for example, measures the difference between a fast and slow moving average. In the case of the CCI, the "fast" measure is the price itself, and the "slow" measure is a moving average. Thus when we look at the CCI, what we are actually seeing is measurement of the deviation of price from its moving average, normalised to fit on a scale of roughly -250 to +250. A chart example will make this clearer:
Here we have plotted a 14 period Exponential Moving Average (EMA) - the orange line - and a 14 period CCI - the lower graph. In simple terms, the "0" line on the CCI section of the chart can be thought of as representing the EMA, and the CCI line itself (the yellow line) as representing the price.
Thus we can see that at the extreme left of the chart, as the price accelerates through its EMA, so the CCI crosses above the zero-line. When the price consolidates and the EMA catches up with it, so the CCI starts to fall back towards the zero-line. The price rises again, but this time not by as great a magnitude as the previous move, and this is seen on the CCI graph by the CCI rising but not reaching it's previous high.
This "divergence" between the price making a new high and the CCI failing to do so is a signal that momentum in the up move is slowing, and that the move may be over, at least for the time being. This is essentially how all momentum indicators work.
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dentist007
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Username: dentist007
Post Number: 1
Registered: 09-2005Rating: N/A
Votes: 0
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| | Monday, March 05, 2007 - 04:40 am: |
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you must make sure first that there is a decent trend.
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trumpcard
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Username: trumpcard
Post Number: 63
Registered: 07-2004Rating: N/A
Votes: 0
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| | Monday, March 05, 2007 - 12:06 pm: |
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Woodies CCI (do a google search) can be quite a useful way for analyzing various patterns the CCI indicator makes. On the main site there are set rules for how to trade each pattern, and I believe other sites have modified rules. There's a wide range of CCI indicators out there. I dabbled with the woodies CCI stuff about a year ago but found the patterns too subjective
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