Turtles CCI

[crown]

it is the average of typical price which is subtracted from typical price to know

whether the typical price is above or below TPMA. if the TP is greater then TPMA it

will indicate positive CCI and vice versa. Thereafter, this difference (typical price - TPMA) is to be compared with mean deviation to understand the momentum. Therefore, there are following things which this CCI analyse;

first, whether the current typical price is greater than TPMA or less than TPMA. if the TP is greater then TPMA, it will indicate that the momentum/strength is up and the price of the share is likely to increase while if the TP is less then TPMA, it will indicate that the momentum/strength is down and the price of the share is not likely to increase or the price is likely to decrease. In simple words, this difference (whether positive or negative) will indicate the strength in the movement of price in a specific direction.
Thereafter, this difference whether positive or negative is compared with average difference (mean deviation) to know the pace or speed of the movement of the price in the current direction. if the difference between Typical price and TPMA (TP-TPMA) is more than mean deviation the speed is up; while if the difference between TP and TPMA is less than mean deviation, the speed or pace of the price in the current direction is down or decreasing.
The reason behind dividing the difference between Typical price and TPMA (TP - TPMA) by the mean deviation in stead of subtracting the mean deviation from the difference between TP and TPMA is just that it can be applied to all charts with ease and also that it can be read/understood in the form of common criteria for all charts.

comments are solicited from all learned members so that I can be sure that I have understood it appropriately.

Thanks to all

 

[rajputz]

Just got a sell signal on GAIL. Check the chart: -

All conditions were fullfilled

 

[rajputz]

while trying to understand the CCI and some other indicators; I just got a very valid point which I would like to share wid all especially rajput bhai, vsoma bhai and vinod bhai.

while analysing an indicator for its implementation and functionality, it is of utmost importance that one is very very well aware of its formula and the concept of the original author of the formula while he was writing it. because then only I will be able to use the indicator with its full functionality which will directly add to my performance in trading.

Many forumulas that are used in the share market for indicators were not really dervied for working in stock market. Some of which i know are RSI and CCI. Both were derived for some other purpose(i dont know exactly) but worked fine in stock market.

 

[rajputz]

And this is the main reason that i prefer to enter when candle is about to close. 20 seconds before the candle closes. Enter when current candle is about to close and exit also when current candle is about to close. the fluctuation in between is not final. Just have a look at 11:27, how much the price fluctuated to upside, but suddenly as the candle was about to close, price approached the lower levels. Now on second time cci enetering -100 line will be exit at par or stoploss hit or where ever it reverses.

 

[rajputz]

exit at par widout waiting for trade to go in loss....exit is at the same level where we have the entery...brokerage is also covered.

 

[rajputz]

Entry at grasim

15 min trend is also up. Pivot broke. will go with the higher time frame. Lets C how it gives. Entry is at 1796.9.

 

[rajputz]

Just got a sell signal on GAIL. Check the chart: -


All conditions were fullfilled

exit at par widout waiting for trade to go in loss....exit is at the same level where we have the entery...brokerage is also covered.

My self screwed the trade of GAIL. was using EOD setting of CCI 20 on intraday. Where as i needed to use it as 14.

 

[crown]

My self screwed the trade of GAIL. was using EOD setting of CCI 20 on intraday. Where as i needed to use it as 14.

Rajput bhai

one very important query on the same issue and will be very kind of you and other learned members to guide me please on this.

how to choose which setting of CCI or any other indicator is best?

Other things about CCI have been successfully worked out by me and I will surely be putting my analysis of the same over here. But until I got the complete idea, it will be of no use. Therefore, please help me on this issue that how to choose which settings are best?

Thanks again

 

[rajputz]

sorry guyz...coudnt post the updates...Net started and again stopped in day...i dont know for how much days will face the problem...

 

[rajputz]

For timeframe below hourly use cci 14...and above that cci 20