Results 1 to 7 of 7
  1. #1
    Legendry Member Michael Hodges's Avatar

    The Commodity Channel Index - Channel Profits, Not Just For Commodities !!!

    The Commodity Channel Index is another great tool with a misleading name. First, it is not just for commodities, it can be used with just about any asset that has a chart. Second, it's not an index per se, it is an oscillator style tool like stochastic, RIS or MACD. If fact, it gives signals in much the same way as stochastic and RSI, ranging between two extremes and making signals based on convergence, divergence and crossovers. This is a recommended tool.

    The Commodity Channel Index, Full Review

  2. #2
    Master Member SeasaltMcFish's Avatar
    Hmmm.... my MT4 gives only one line

  3. #3
    Legendry Member milos's Avatar
    I can use CCI indicator.

    Click image for larger version. 

Name:	cci.jpg 
Views:	49 
Size:	18.9 KB 
ID:	5525.

  4. #4
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by SeasaltMcFish View Post
    Hmmm.... my MT4 gives only one line
    There are two ways to use it... the first is to use the central line like it is an RSI, above and below, the second is to market extremes, hi and low, and then use those lines like stochastic.

  5. #5
    Master Member SeasaltMcFish's Avatar
    k, thanks.

  6. #6
    Active Member ehenderichs's Avatar

    Stochastics and CCI indentify the same conditions -> different signals? !!!

    Last weekend I spend some time getting more familiar with the CCI indicator. It is also a oscilator and roughly gives the same information as stochstics: momentum, overbought, oversold, divergence, etc. The tutorials I read/watched stated:
    - when CCI crosses the +100 (overbought) it is considered a buy option
    - when CCI crosses the -100 (oversold) it is considered a sell option

    Lookging at both stochastics and cci, the indicate overbought and oversold conditions roughly at the same time. However I never heard stochastics in the overbought is considered a buy option (and vice versa). Actually it is expected to drop and you should wait for confirmation and take a put option.

    So why do these somewhat similar indicators give different advice for the overbought/oversold areas? Or did I accidentally watched a load of bull clips? Thanks in advance

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by ehenderichs View Post
    Last weekend I spend some time getting more familiar with the CCI indicator. It is also a oscilator and roughly gives the same information as stochstics: momentum, overbought, oversold, divergence, etc. The tutorials I read/watched stated:
    - when CCI crosses the +100 (overbought) it is considered a buy option
    - when CCI crosses the -100 (oversold) it is considered a sell option

    Lookging at both stochastics and cci, the indicate overbought and oversold conditions roughly at the same time. However I never heard stochastics in the overbought is considered a buy option (and vice versa). Actually it is expected to drop and you should wait for confirmation and take a put option.

    So why do these somewhat similar indicators give different advice for the overbought/oversold areas? Or did I accidentally watched a load of bull clips? Thanks in advance
    It depends on if the market is trending, and which direction. In a ranging market stoch can be used for ob/os levels, and also in a trending market but only when it counter trend. This is what I mean; in a down trend stoch above the upper signal is OB, in an uptrend stoch above the upper signal line is a sign of strength that may go on forever. In the first case you fade the market, trade along with the trend, in the second case you trade crossover signals in line with the trend. Hope that helps.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3