MetaTrader Indicator CCI divergence
Posted by Boris F at 7/8/2010 6:50 PM 
Categories: metatrader indicators
Tags: metatrader indicator forex indicator
Categories: metatrader indicators
Tags: metatrader indicator forex indicator
Developed by Donald Lambert, the forex indicator Commodity Channel Index (CCI) was designed to identify cyclical turns in commodities.The assumption behind the indicator is that commodities (or stocks or bonds) move in cycles, with highs and lows coming at periodic intervals
CCI calculation
Calculate the last period's Typical Price (TP) = (H+L+C)/3 where H = high, L = low, and C = close.
Calculate the 20-period Simple Moving Average of the Typical Price (SMATP).
Calculate the Mean Deviation. First, calculate the absolute value of the difference between the last period's SMATP and the typical price for each of the past 20 periods. Add all of these absolute values together and divide by 20 to find the Mean Deviation.
The final step is to apply the Typical Price (TP), the Simple Moving Average of the Typical Price (SMATP), the Mean Deviation and a
Constant (.015) to the following formula:
CCI = ( Typical Price - SMATP ) / ( .015 X Mean Deviation )
CCI Divergence shows divergence between CCI indicator and price.
The signal to buy comes when new Low-fractal is below the previous one, and corresponding CCI meaning is above the previous one The signal to sell comes when new Up-fractal is above the previous one and the corresponding CCI meaning is below the previous one. Learn more about divergence conception
GBPUSD H1 period: 24 Jun, 2010 -8 Jul, 2010
learn more about our divergence metatrader indicators
regards,
http://iticsoftware.com
CCI calculation
Calculate the last period's Typical Price (TP) = (H+L+C)/3 where H = high, L = low, and C = close.
Calculate the 20-period Simple Moving Average of the Typical Price (SMATP).
Calculate the Mean Deviation. First, calculate the absolute value of the difference between the last period's SMATP and the typical price for each of the past 20 periods. Add all of these absolute values together and divide by 20 to find the Mean Deviation.
The final step is to apply the Typical Price (TP), the Simple Moving Average of the Typical Price (SMATP), the Mean Deviation and a
Constant (.015) to the following formula:
CCI = ( Typical Price - SMATP ) / ( .015 X Mean Deviation )
CCI Divergence shows divergence between CCI indicator and price.
The signal to buy comes when new Low-fractal is below the previous one, and corresponding CCI meaning is above the previous one The signal to sell comes when new Up-fractal is above the previous one and the corresponding CCI meaning is below the previous one. Learn more about divergence conception
GBPUSD H1 period: 24 Jun, 2010 -8 Jul, 2010
learn more about our divergence metatrader indicators
regards,
http://iticsoftware.com
Hi Boris
Is there an EA developed using CCI divergence indicator?
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We can develop expert advisor based on your description. You can download and fill in forn from our mql4 coding page and we will estimate coding price and time.
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I really would like to purchase this SSI Divergence indicator. I would like to know whether it is lagging indicator or not? and Is it repainting? I would like the indicator to show right after the bar close. Thank you.
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> Is it repainting?
No
> it is lagging indicator or not?
Learn more...
Standard Bill William's fractals have period 2: 2+1+2 = 5 bars. We use extended version of fractals with custom period.
In case Fractal.Period = 1 we get 1+1+1 = 3 bars model.
In case Fractal.Period = 3 we get 3+1+3 = 7 bars model.
In case Fractal.Period = 5 we get 5+1+5 = 11 bars model.
etc.
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