This is an indicator I wrote because NT does not give you the ability to put user buttons on the chart. I needed various ways to enter, and manage trades. When I trade ETF's I use fixed risk R-Multiples share sizing, for instance I want to draw a horizontal line on the chart below a resistance level where I want my stop to be placed, then when I hit the buy button, the indicator will use the difference between the price I am entering and where the stop line is, and calculate the amount of shares I need, in order to keep my risk fixed, and also automatically place my stop at the line drawn. So, if I want all my trades to risk only $100, I would need 1000 shares if my stop will be 10 ticks away, but 500 shares if my stop is 20 ticks away. Both trades are only risking $100 by using different share sizing. I also use it for things like, setting price alerts when price crosses a line I draw on the chart, enter at the close of bars, automatically choose the proper ATM based on the chart period I am trading, move my stop or target in R-Multiple increments, Initiate automatic bar trailing on demand, and various features I use.
Last edited by monpere; January 9th, 2011 at 11:41 AM.
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Thanks for this thread. I always appreciate reading other views on trading.
Is it me or is the cross of the zero line of the CCI about when price closes above / below the SMA of the value of the indicator? So if the setting of CCI is 14 then put a SMA 14 on your chart. The CCI cross of zero seems to be when the price closes above / below the SMA.
I have two examples attached:
-CCI 14, SMA 14, 5 minute
-CCI 30, SMA 30, daily
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You have missed your calling in life. That is impressive coding.
The CCI :
Price -SMA(Price, CCI Length) / .015*(Price-SMA(Price, CCI Length) )
The Classical CCI uses the Typical price. I prefer weighted , but that is a personal choice. Using Close makes it rather choppy.
All the CCI is doing is measuring the distance between a price and its SMA then dividing that distance by , itself multiplied by a factor of .015. This "Normalizes" the CCI (keeps it between a standard set of values) . That is why it ranges from +200's to -200's normally. The reason Donald Lambert chose .015 was to force 85% of the values between 100 and -100. If Price overcomes the 15% barrier it usually shows strong momentum.
So yes there is a similarity between the movement of a moving average and the CCI of the same length. However, they are not always the same due to the .015 factor.
The CCI makes it easier to see whats going on. You can get the same information by looking at the moving average and the price bars, or just the price bars for that matter. But I get sensory overload trying the latter method.
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
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actually I didn't assume anything. I was trying to write it so it would be visible on any color chart background. White letters on a black background or black letters on a white background accomplish that. At least that was my logic behind it.
I'll rewrite so users can choose whatever color they want.
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