A CCI Variant Using T3 Smoothing and Floating Levels

Summary

This indicator modifies the Commodity Channel Index by replacing its usual simple moving average with a T3 average and its mean deviation with an exponential moving average based deviation. The stated aim is to smooth the calculation while retaining a responsive signal. The author rejects T3 for the deviation component because it can become negative, which would make it unsuitable for the CCI calculation described.

The indicator also uses floating rather than fixed threshold levels, intended to adjust to changing market conditions and make the CCI adaptive. The suggested use is to interpret changes in the indicator's color as signals. However, the document gives no formulas, parameter settings, rules for entries or exits, market examples, or backtest results. Its claims about speed, smoothness, and responsiveness are qualitative, so they should not be treated as evidence of improved trading performance.

Key ideas

• The variant uses T3 in place of the usual simple moving average in CCI.
• It uses EMA-based deviation because T3 deviation may become negative.
• Floating levels are intended to adapt thresholds to changing conditions.
• Color changes are proposed as signals, but no specific trade rules are defined.
• The document supplies no quantitative performance evidence.

Tags

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