Woodies CCI with Linear Regression Direction Filters

Summary

This indicator combines two Commodity Channel Index readings with a linear regression of closing prices. It returns a 14-period CCI and a 6-period CCI, along with separate directional flags: one is set when the regression value is above the close, and the other when it is below. These outputs can help users display momentum readings alongside a simple price-versus-regression direction signal.

The code also contains a commented-out 34-period exponential moving average, so that average is not part of the active calculation. The document gives implementation details but provides no trading rules for entering or exiting positions, no parameter rationale, and no performance evidence. The signals should therefore be treated as indicator components rather than a tested strategy; the document does not establish whether they predict future price movement or how they behave across markets.

Key ideas

• The indicator calculates CCI using closing prices over 14 and 6 periods.
• It compares the close with a 25-period linear regression value to produce directional flags.
• The 34-period exponential moving average is mentioned but commented out.
• The document gives no entry rules, backtest results, or evidence of predictive performance.

Tags

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