A Double-Smoothed Wilder CCI with Floating Signal Levels

Summary

This indicator description presents a modified Commodity Channel Index intended to filter price noise and help identify trends. It differs from conventional CCI by using standard deviation in its calculations instead of mean absolute deviation. It also allows price filtering with a double-smoothed Wilder exponential moving average, which the description says may remove some false signals.

Floating levels are added as trend references, and the indicator can change its colors according to crossings of outer levels, crossings of a middle level, or changes in slope. Users are told they may treat color changes as signals. The document provides no parameter values, chart examples, backtest, or performance evidence, so it does not show whether the modifications improve signal quality or how the signals should be traded. The indicator is best understood here as a technical-analysis concept whose thresholds and use would need independent evaluation.

Key ideas

• The modified CCI uses standard deviation rather than mean absolute deviation in its calculation.
• A double-smoothed Wilder EMA can be used to filter price input and is intended to reduce false signals.
• Floating levels provide references for interpreting trend direction.
• Color changes may reflect outer-level crossings, middle-level crossings, or slope changes.
• The description provides no testing evidence or detailed trading rules for acting on the signals.

Tags

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