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Registered User
Joined: 10/28/2004
Posts: 6
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Bruce L gave a formula for a Commodity Channel Index. Is it different enough from RSI or MACD as an over bought/sold oscilator to make it worthwhile?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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RSI and MACD are very different indicators from each other as well as from CCI. I am not sure I would classify MACD an over bought/over sold indicator. It only looks at the relationship of two moving averages.
RSI looks at the relationship between the magnitude of the up moves versus the down moves for a stock in a certain time period.
CCI looks at where the high, low and close compare to their own averages over a certain time period.
Here is are videos on moving averages and MACD you might like. They should give you a strong indication what they mean and what they can reveal about a stock.
Understanding Moving Averages - Part I, The Basics
Understanding Moving Averages - Part II, Using Multiple Averages
Understanding MACD
As for the question of whether CCI is "worth while" that is a judgement call only your research and analysis style can answer.
- Craig
Here to Help!
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Registered User
Joined: 10/7/2004
Posts: 11
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CCI gives me a good entry point.
Assuming a stock meets all my criteria.
(Market, sector, Fundamental analysis, News and Technical Analysis)
When CCI is going up from an overbought condition and when it breaks a (downward drawn)trend line, I usually buy.
Somehow it does not seem to work when I am shorting as “tops are harder to pick than bottoms”.
For me, it is a good indicator to time your buying.
Good Luck
Uday
Trade Wisely
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Registered User
Joined: 3/28/2005
Posts: 1
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Craig,
Could you give me a pcf for a 90 period CCI?
Thanks so much!
Aaron
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here is a thread that has many CCI formulas. You will see the formula pattern and can extend it to 90-days:
CCI INDICATOR
- Craig
Here to Help!
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Registered User
Joined: 10/7/2004
Posts: 2
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Craig,
Can you explain to me please "smoothing average" in "custom indicator setting" table? If I am using CCI 6, do I have to use 6 days Smoothing Average? What is "Smoothing Average" for? Thanks.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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It literally smoothes or averages the line. For the CCI formula, the smoothing is already in the formula, you set yours to 1 in the custom indicator.
- Craig
Here to Help!
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