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i am trying to calculate a price level based on current cci values.
lets say we use a 5 period cci on a daily timeframe.
the last closed bar does have a cci value of 120.0 and a price value of 1920.0.
now i want to know at which price level the current (not closed) cci value would reach a value of 100.0
does anybody have an idea how to calculate this?
thank you and cheers,
mike
Can you help answer these questions from other members on NexusFi?
This got me thinking about representing CCI as a band rather than an oscillator.
The CCI formula is just a comparison of Typical price, (High + Low + Close)/3, to a moving average, expressed as a percentage of the average deviation from the MA over …
It draws bands on the price chart where CCI would have a value of 100 (or 200 or whatever -- I think I remember that you can set the values you want.) There's also an explanation of how it's calculated, as I recall.
well, to calculate the cci we could use the following informations:
There are several steps involved in calculating the Commodity Channel Index.
The following example is for a typical 20 Period CCI:
CCI = (Typical Price - 20 Period SMA of TP) / (.015 x Mean Deviation)
Typical Price (TP) = (High + Low + Close)/3
Constant = .015
The Constant is set at .015 for scaling purposes.
By including the constant, the majority of CCI values will fall within the 100 to -100 range.
There are three steps to calculating the Mean Deviation.
1. Subtract the most recent 20 Period Simple Moving from each typical price (TP) for the Period.
2. Sum these numbers strictly using absolute values.
3. Divide the value generated in step 3 by the total number of Periods (20 in this case).
if we do this with numbers, it looks like this:
Typical Price of day 20 : 25.06
20 Day SMA of Typical Price : 24.21
20 Day Mean Deviation : 0.55
the question now is how i have to change the calculation in order to get a price by providing the cci value of 100.
seems to be not that easy because price will change the mean deviation, the typical price of today and the 20 day sma of tp.
