Smooth Commodity Channel Index

Here is a screen shot of a new Smooth CCI mod. I was looking again at the formula of the CCI, Check this mod too. The CCI smooth is a continuation of the previous release.

Here is the formula of CCI:

CCI = (Typical Price - 20-period SMA of TP) / (.015 x Mean Deviation) 

In the previous mod I questionned the constant of 0.015. The CCI was created by Lambert. And he had the idea to use a multiplier 0.015, so as a result 70% to 80 % of the price action would remain within -1oo and +100. However we should focus on what his adea was, and you need to change this number to make fit 70% to 80 % of the price action within the levels -100 and 100.

I think you understand much better this indicator now.However this time we can go one step further and not use a difference between 

Typical Price - 20-period SMA of TP      but something else:

5-period EMA of TP - 20-period SMA of TP for example. In this way you can get much smoother CCI without adding any complexity to the indicator. What counts is that the major turns are without much lag.

And this indicator allows to build different derivative indicators and possibly to smooth them.

The indicator has three settings:

CCI period - this is the CCI period

CCI Period 1 - This is the period used for the moving average period (we use moving average instead of raw price)

level- the level is used to determine how far the indicator line will go above and below zero, basically this is a scaling parameter. The default is of course 0.015.

Download from here, only for registered users.