A CCI Variant Using the Median Line of a Step Channel

Summary

This note describes a variation on the Commodity Channel Index. Instead of calculating the indicator from the moving average of typical price, the variant uses the median line of a Step Channel. The channel line is described as reflecting the balance between rising and falling prices, and the post contrasts it with a 14-period simple moving average of typical price. The specified channel settings use a standard deviation input, a three-period moving average, and a volatility setting of 70.

The author recommends trying a two-period CCI and mentions both fast-period and slow-period versions, without giving precise settings for those alternatives. The material offers no chart data, calculation details for the modified input, trading rules, or performance results. It therefore introduces an indicator construction idea, but does not establish how the variant behaves or whether it improves on conventional CCI in any market or timeframe.

Key ideas

• The variant calculates CCI from a Step Channel median line instead of the typical-price moving average.
• The post describes the channel line as reflecting opposing rising and falling price pressure.
• Its example contrasts the channel with a 14-period typical-price simple moving average.
• A two-period CCI is recommended, while fast and slow versions are mentioned without full settings.
• No trading rules or performance evidence are supplied.

Tags

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