CCI Candle Volume Indicator with Overbought and Oversold Zones

Summary

This indicator represents a volume-adjusted CCI-style calculation as candles rather than a conventional line. It uses configurable settings for the CCI period, volume type, upper and lower levels, a point gap, and horizontal shift. The stated default levels define an overbought boundary and an oversold boundary, with a channel between them.

Candle colors convey both direction and the candle’s position relative to that channel: candles that close inside use familiar up and down colors, while those outside use distinct colors depending on direction. The document suggests this display may make analysis more informative in some situations, but gives no chart examples, performance evidence, entry and exit rules, or explanation of how the volume input affects the calculation. The visual encoding should therefore be treated as an aid to inspection rather than a validated signal.

Key ideas

• The indicator renders a volume-based CCI-style calculation as candles.
• Configurable inputs include the calculation period, volume type, threshold levels, gap, and shift.
• Candles inside the threshold channel use direction-based colors, while candles outside use separate colors.
• The document gives no evidence that the color scheme improves trading results.

Tags

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