Recursive CCI: Applying the Commodity Channel Index to Its Own Output

Summary

This indicator repeatedly applies the Commodity Channel Index (CCI) to the result of the previous CCI calculation. At the first level it matches the conventional CCI, which measures price; each subsequent level instead uses the prior CCI series as its input. The described implementation supports recursion up to level 25, a practical limit because the output may become difficult to recognize at higher levels.

The indicator also offers floating or quantile-based levels, price smoothing and filtering choices, color options, alerts, and multi-timeframe use. These are feature descriptions, not evidence of predictive value: the document provides no trading rules, examples, or test results. Its author explicitly characterizes the recursive approach as experimental and advises careful testing before use. The material does not explain which recursion levels or settings are appropriate for any market or timeframe.

Key ideas

• At its first level, the indicator is equivalent to a conventional CCI calculation.
• Each additional level applies CCI to the previous level’s output rather than directly to price.
• The implementation limits recursion to 25 levels for practical reasons.
• Optional features include adaptive levels, smoothing, alerts, colors, and multiple timeframes.
• The recursive approach is experimental and requires thorough testing before use.

Tags

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