Using Zero-Line Crosses in a Tilson-Smoothed CCI

Summary

This document introduces a Commodity Channel Index variant smoothed with the Tilson algorithm. It describes the indicator as being calculated at bar close and presents it as a signal filter that can be incorporated into a larger trading system.

The suggested interpretation is directional: a histogram crossing above zero generates a buy signal, while a crossing below zero generates a sell signal. These are simple indicator rules rather than a fully specified trading strategy; the document does not define position sizing, exits, market selection, or risk controls. It provides no backtest results or evidence that the crossings are profitable, and the signals may be prone to lag or whipsaws. The indicator is best understood as a technical input whose usefulness would need evaluation in the context of a complete system.

Key ideas

• The indicator smooths the Commodity Channel Index using the Tilson algorithm.
• Its calculation is based on completed bars.
• An upward histogram cross through zero is presented as a buy signal.
• A downward cross through zero is presented as a sell signal.
• The document gives no testing evidence or broader trade management rules.

Tags

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