CCI indicator

Ive heard many things about how useful the CCI was and i have been doing some research with it and i was just wondering what your views on this indicator was, and if you like it what kind of indicators goes well with it to filter out bad trades.

the setup i am useing is a 14,HLC/3 and a 6,HLC/3 stacked

Thx,

Tool

who says this is a good indicator?

many traders are trading successfully with CCI

cci certainly has a large following. i am sure you have been to the inventors websight, woodiescciclub.com. the proper way to trade this according to the people on this websight is to trade with the indicator alone. you do not watch a price chart at all if you trade it in its purest form. i have played with it but nothing more.

That's right. Those traders at Woodie's club are holding the CCI as a Holy Grail. Absurd to believe one can trade without looking at chart...I personally don't fall for it.
Beside all this tabu,I find it reasonably reliable in conjunction with candlestick patterns.(I'm trading off 5M,short term)

The CCI is very noisy. I have a better version that removes the leaky moving average in the formula and replaces it with a real lowpass filter instead. I call it CCIDER.

To use CCI/CCIDER you have to remember that this indicator is extremely contrarian. It always thinks that a big move is followed by a reversal instead of a trend continuation. You will be totally lost unless you learn to interpret the patterns within the indicator itself. Have you used other types of oscillators? You really need to know osc interpretation to use CCI/CCIDER, but if you do it helps. I use it myself in my trading suite in a minor capacity.

Hi,

Is the CCIDER your personal indicator or a public indicator?

CCIDER is my own creation. The idea behind it is very simple. I use the exact CCI formula, except that I remove the Moving Average function and replace that part with an equivalent Lowpass Filter. This results in much better noise rejection and frequency selectivity. I did this exact same kind of upgrade to other classic indicators too:

STOKE (stochastics)
BANDTASTIC ('bolly' Bands)
MACDADDY (MACD)
MOMONY (momentum)
ROCKET (ROC)
RSILK (RSI)

Here is an example showing CCIDER heads up against CCI. The top window also has BANDTASTIC displayed on the prices.

CCI can be a confusing indicator. If at the 100+ level and is consider overbought then why advocate a buy order when it surpassed 100+. Shouldnt it be a sell order at at overbought level much like the stochastic.

In some other website, it actually tell us to sell at the overbought area not buy.

But my thinking is that it would be prudent to enter a buy order as soon as the line cross over the 100+ since it has some way to go before it is truely overbought.
Meaning that after the cross to 100+ it will continue to go up until such time it became overbought. So, we can enter buy just when it cross and quickly exit make some pips before it became overbought.

thank you