CCI 50 for Momentum Determination

[cooper59 10]

Walter,

Thank you for putting up this method. It seems to make a lot of sense to use it as another indicator or filter. I am curious, you were showing it on the Forex. Have you or anyone else tried this on the S&P ? Also, if you were using a 233 tick chart, were you using a 100/34 ma crossover? Thanks!

[OAC 10]

Walter,

I am curious, you were showing it on the Forex. Have you or anyone else tried this on the S&P ?

 

I suggest you read everything carefully before asking questions. The very first post that started this thread has an ES chart attached to it.

[cooper59 10]

Thank you for your help

[walterw 10]

I suggest you read everything carefully before asking questions. The very first post that started this thread has an ES chart attached to it.

 

 

That was a chart from Russell (AB), using Esignal data feed (ES) into tradestation...

[kingfish88 10]

Thanks Walter! I found that CCI 500 works great as long as a fast chart.

[Eric Johnson 10]

A related indicator that I have found useful. It is a RSI dual line 7,4 . I hide the main and display the signal. I use the standard 30 and 70 margin levels. Within the margin is chop or little momentum. Price at the margin is a market deision point, or sometimes a 50% of total trend. Above or below is strong trending with momentum. The reason I like it is because it seems to be self tuning to convey minor and longer trend information.

I also like to use a regular momentum oscillator histogram 5,22 it is the one that many of the bollanger band squeeze systems are using.

Edited December 28, 2008 by Eric Johnson

[walterw 10]

A related indicator that I have found useful. It is a RSI dual line 7,4 . I hide the main and display the signal. I use the standard 30 and 70 margin levels. Within the margin is chop or little momentum. Price at the margin is a market deision point, or sometimes a 50% of total trend. Above or below is strong trending with momentum. The reason I like it is because it seems to be self tuning to convey minor and longer trend information.

I also like to use a regular momentum oscillator histogram 5,22 it is the one that many of the bollanger band squeeze systems are using.

 

Hi Eric, can you post a chart of that ? it would be nice to see it... thanks Walter.

[Eric Johnson 10]

You have done so much for this forum, I hope this is a bit interesting. The chart is of MSFT in a side moving market with some smooth and choppy trends. The smooth up trend beginning in Oct 2005 shows how the RSI 7,4 works, with a near 50% of up trend on the RSI upper margin cross, also a decision point price resistance from the 1st of October. You may be able to see how the RSI caught the 25% trend retrace and the 50% on the backside in December. The original point was that outside the 30 and 70 margin lines shows strong trending. I yellowed the 50 level of the indicator, because I know how you like crossovers, and this is a bit like a normal CCI.

As for the momentum oscillator, the levels for crossover are up to you, depending on the size of trend you are targeting. They are used for bollanger breakouts to see direction and supporting momentum. You can see a bit of how the 2 indicators sync in the above mentioned October -December 2005 trend.

I had a system of keltner band breakouts and RSI margin crosses combination, but I don't use it much. Anyhow shared ideas, new perspectives.

RSI and MO.zip

Edited December 29, 2008 by Eric Johnson

[walterw 10]

Thanks for sharing Eric , cheers Walter.

[Guncha22 10]

Shure Blue Ray , it has a 50 default for a 233T, if you use it on a 23Tick should be set to 500....

 

I atach another example from this evening... cheers Walter.

 

can you share indicator what you use ?

[walterw 10]

can you share indicator what you use ?

 

I think it was here on this thread... if not pm me back, cheers Walter.

[TEAMTRADER 10]

Has anyone come across a trendline superimposed on the CCI?

I find CCI-55 is best for divergence although the 50 setting is near enough.

The momentum levels I also have differently and mine are set on 125/-125 to filter out the signals but one indicator cannot do the full job.

Thanks

TEAMTRADER