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Overlaying CCI with a Smoothed Moving Average and Threshold Channel

Article MQL5 code base
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Summary

This indicator description explains a chart overlay that plots the Commodity Channel Index alongside a smoothed moving average, with the default overbought and oversold levels displayed as channel boundaries. The CCI is calculated over a configurable period, while the moving average method, smoothing depth, phase parameter, channel deviation, applied price, indicator shift, and upper and lower CCI levels can be adjusted. The stated defaults use a 14-period CCI, a 12-step smoothing depth, and thresholds at positive and negative 100.

The document is primarily a technical indicator specification and implementation note. It identifies the required smoothing library and gives historical context for the indicator, but offers no trading rules, market examples, backtest, or evidence that the overlay produces an edge. It therefore explains how to configure and visualize the indicators rather than how to enter, size, or exit a position.

Key ideas

  • The chart combines CCI with a smoothed moving average and displays threshold levels as channel boundaries.
  • Users can configure the CCI period, smoothing method, channel width, applied price, and threshold values.
  • The default CCI boundaries are positive and negative 100.
  • The description provides no tested trading strategy or evidence of predictive performance.

Tags

Technical indicatorsMean reversion

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