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Commodity channel CCI 30 day

sorenfl
sorenfl ✭
in Scanning
Hi, I am looking a lot at CCI these days (30 day). Does anyone has an interesting strategy to share on that specific TA style?
I appears to me that stocks are normally too late to trendfollow when CCI moves up through 100, a buy at 0 is a must to me (only in swingtrades). Maybe some of you use Stockcharts to scan or get alerts on CCI?

Answers

  • markd
    markd mod
    I don't use CCI, so take this with a grain of salt.

    For aggressive short term trades, it seems you could use CCI on very strong stocks (long term MA rising, intermediate term MA rising above long term MA, price above both) by putting in a buy stop above the bar that causes CCI to fall below -100, and each subsequent lower high until you get stopped in. Then a sell stop above the high of the bar that puts CCI above 100, or, a sell stop below that bar's low, and each subsequent higher low.

    I haven't tested this idea, so it's just an impression.

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