CCI Signal-Line Crosses for Overbought and Oversold Entries

Summary

This indicator combines the Commodity Channel Index (CCI) with an exponential moving average signal line. Its four adjustable inputs control the CCI lookback, the EMA lookback, and the overbought and oversold thresholds. The signal line is described as a three-period EMA by default, while its period can be changed.

A buy label appears when CCI crosses upward through the oversold level while remaining above its signal EMA. A sell label appears when CCI crosses downward through the overbought level while below the EMA. These conditions combine a threshold crossing with confirmation from the signal line. The description gives no performance tests, market, bar interval, exit rules, or position sizing, so it explains signal generation rather than establishing profitability. Traders would need to define those elements and evaluate the indicator on their own data before using it.

Key ideas

• The indicator pairs CCI with an exponential moving average signal line.
• A buy label requires an upward cross of the oversold threshold and CCI above the EMA.
• A sell label requires a downward cross of the overbought threshold and CCI below the EMA.
• CCI lookback, EMA lookback, and both threshold levels are adjustable.
• The description provides no backtest results or trade management rules.

Tags

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