CCI Candles Built from Smoothed Price Series

Summary

This indicator presents the Commodity Channel Index as candles. It calculates separate CCI values from smoothed high, low, open, and close prices, then combines those four values into a candle-style display. The resulting view can be read against selected CCI levels, as with a conventional CCI, or watched for the candle values to cross the zero line as a possible trend-change signal.

Price smoothing is intended to make the CCI values less jagged. The user can choose a simple, exponential, smoothed, or linear weighted moving average for that price smoothing; setting the smoothing period to one or lower disables it. Regardless of that choice, the indicator retains a simple moving average for calculating mean deviation, following the usual CCI approach. The document explains the construction and suggested interpretations, but provides no parameter recommendations, chart examples, backtest results, or evidence that zero-line crossings predict trend changes. Signals should therefore be evaluated on the intended market and timeframe.

Key ideas

• Four CCI series are calculated from smoothed high, low, open, and close prices.
• Those series are combined into a candle-style indicator display.
• The display can be interpreted using CCI levels or observed for zero-line crossings.
• Smoothing can use four moving-average types, while mean deviation continues to use a simple average.
• The document offers no empirical assessment of the proposed trend-change signal.

Tags

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