A CCI Oscillator Applied to MACD for Trend Signals

Summary

This document describes an experimental variation on the Schaff Trend Cycle indicator. The conventional indicator applies a stochastic calculation to the MACD line to create a cyclical oscillator intended to smooth short-term fluctuations while responding to sharp market changes. The variation replaces the stochastic calculation with the Commodity Channel Index (CCI), treating MACD as the input series.

The author reports that some outputs appear potentially useful, but provides no charts, parameter comparisons, backtest results, or defined performance evidence. Two possible signal rules are suggested: act when the oscillator crosses its zero line, or when its slope changes direction. The note explicitly recommends further checking before trading. It does not specify entry timing, exits, risk controls, asset universe, or how to distinguish reliable signals from noise, so the method should be treated as an indicator experiment rather than a validated strategy.

Key ideas

• The standard Schaff Trend Cycle applies a stochastic calculation to MACD to form an oscillator.
• This variant substitutes CCI for the stochastic calculation and uses MACD as its input.
• Possible signal events are a zero-line crossing or a change in the oscillator’s slope.
• The author gives no performance data and advises testing the indicator carefully before use.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.