Pollan Indicator: Combining CCI and RSI Crossovers for Trade Signals
Summary
The Pollan indicator combines the Commodity Channel Index and Relative Strength Index by comparing their values across a fixed window of historical bars. It forms two oppositely oriented series from the CCI–RSI and RSI–CCI differences, with a coefficient setting controlling how many of those differences contribute. Moving averages smooth the two series, and their crossovers generate suggested long and short signals.
The article describes adjustable CCI and RSI periods, smoothing length, and historical-window coefficient, and says shorter indicator periods or smoothing can make signals more responsive. It recommends confirming signals with other technical tools, adjusting parameters to the asset and strategy, backtesting settings, and accounting for volatility. It provides no measured performance, market-specific results, or evidence that the crossovers predict profitable reversals. The explanation and included implementation details also do not establish position sizing, exits, or a complete risk framework.
Key ideas
- The indicator compares CCI and RSI values and also calculates the inverse RSI–CCI difference.
- A coefficient controls how many historical difference terms enter each of the two series.
- Moving averages smooth the series, and their crossovers mark potential long or short entries.
- Shorter periods and smoothing settings can increase responsiveness and signal frequency.
- The document advises confirmation and backtesting but presents no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.