Discussion of article "CCI indicator. Three transformation steps"
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New article CCI indicator. Three transformation steps has been published:
In this article, I will make additional changes to the CCI affecting the very logic of this indicator. Moreover, we will be able to see it in the main chart window.
For the experiment, we will take a rectangular window, a triangular window and a flat-top window. The last window function is rather unusual as some of its weights take on negative values. Let's also take three asymmetric windows - with linear, power and exponential weights. The averages with linear and exponential weights are available in MetaTrader in the Moving Average menu.
The general view of all options is shown in the figure (the lowest indicator is the classic CCI).
All options are quite similar, but their levels can differ quite a lot. It depends on the window function used — some of them lag behind, and relatively large indicator values may occur more often. Other window functions follow the price, and small deviations are more common as a result.
Author: Aleksej Poljakov