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Combining CCI and RSI with Smoothed Threshold Signals

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Summary

This indicator places the Commodity Channel Index (CCI) and Relative Strength Index (RSI) in one oscillator window. It rescales and clips CCI to a 0–100 range, leaves RSI on its usual scale, and plots moving averages of both series. The example uses adjustable lookback periods and smoothing length, with settings shown for short-term trading.

The display marks CCI moving-average crossings of lower and upper thresholds with arrows, colors the background according to whether RSI is above or below its midpoint, and changes the midpoint line color based on smoothed RSI. These features provide a compact view of momentum and possible threshold transitions. The document gives indicator construction details but no rules for entering or exiting trades, no backtest, and no evidence that the signals are profitable. Thresholds, periods, and the CCI rescaling are design choices that require testing for the instrument and timeframe in use.

Key ideas

  • The indicator combines CCI and RSI in a shared 0–100-style display, with CCI explicitly rescaled and clipped.
  • Separate moving averages smooth each oscillator, and their periods can be adjusted.
  • Arrows mark smoothed CCI crossings of lower and upper thresholds, while RSI controls background shading.
  • The page offers a visualization recipe rather than a complete trading system or performance evidence.

Tags

Technical indicatorsMomentumMean reversion

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