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RE: [amibroker] Re: Want CCI to range from 0 to 100



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Steve,

Fascinating history! 

Which market internals do you recommend for intraday near term market
direction?

Thanks,
Grover

-----Original Message-----
From: amibroker@xxxxxxxxxxxxxxx [mailto:amibroker@xxxxxxxxxxxxxxx] On Behalf
Of scourt2000
Sent: Monday, July 10, 2006 22:31
To: amibroker@xxxxxxxxxxxxxxx
Subject: [amibroker] Re: Want CCI to range from 0 to 100


With the CCI(x), the zero line represents your simple moving average 
of typical price ((H+L+C)/3) with a period of x.  When the CCI 
number is positive, that represents a mean deviation of TP above the 
moving average and when it is a negative number, that mean deviation 
of price is occurring below the moving average of TP.

The CCI is nothing more than a modified Z-score formula from your 
old college statistics book where the standard deviation was 
substituted for a mean deviation and then weighted to try and get 
most of the values within the first two mean deviations.

Donald Lambert, the creator of the CCI formula, popped up in Las 
Vegas at the December 2003 Woodies CCI Club meeting to talk about it 
some.  It turns out he used the mean deviation instead of the 
standard deviation because it was a little more challenging to 
program on his TI-59 calculator.   Ironically, Donald Lambert never 
used the CCI in his trading because he never traded.  He is a long, 
long term investor where he was picking stocks to hold for 10+ 
years.  He did have a service at one time in the late 70's/early 
80's where he would code up other trader's systems.

I don't know why you would ever want to try and limit it to a range 
of 0-100 but I guess that's what technical traders do...tinker and 
see what happens.

The CCI is an interesting indicator.  In a lot of ways, it reminds 
me of e-wave counts.  They're always perfect in 20/20, but in real-
time, things aren't always what they at first appear.   If you are 
intraday trading, you'll get a far better read on near-term market 
direction from market internals.  At least, that's what I've found 
(and I do consider myself highly proficient at reading the CCI).







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