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hiker

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Reply with quote  #1 
Glen is the author of this "CCI system", and he requested that I post it for those who have expressed an interest.

Glen provided me the text below that describes how he uses CCI to assist his trading efforts:

The system works on all timeframes, but I normally start with the 60 min chart to call targets..

- I use the 10-period EMA and all other MA'a are SMA

- I use the 20,34,50,100,140 and 200 SMA's...

- I use CCI 10,20,34,60 and 100.

Here is how it works:

When CCI 10 crosses back above -100, the target is the 10EMA

When CCI 10 crosses zero , the target is the 20MA

When the CCI 20 crosses zero, the target is the 34MA

When CCI 34 crosses zero, the target is the 50MA

When CCI 60 crosses zero, the target is the 100MA

When CCI 100 crosses zero, the target is the 140MA

When CCI 100 crosses above 100, the target is the 200MA..

 

- When I get above the 200MA on the 60 min chart, then I switch to the next longest timeframe for the targets..

- So that would be the daily chart and use the same signals for the same targets, then:

 - Weekly and then Monthly.

Sometimes by the time we get to the 200MA on the 60 min chart, we could be ready to turn back down and we could be at the 34 or 50MA on the daily chart...

So we have to use other indicators to help determine if we are OB or OS (Overbought or Oversold) ..Like Slo Stoch…TRIX7...MACD and MACD HISTO..the normal ones we all use.

When CCI 10 gets above +100, then you just reverse the system

It works better when the MA's are in order…10EMA, then 20SMA, then 34SMA,etc..but you can still pick the targets by watching the CCI as they cross zero..

Over time you will also notice such things as the slope of the CCI's, which will also tell you that if CCI 10 crosses zero and the target is the 20MA,

and then CCI 20 turns sideways, then the signal is saying that the 20MA is as far as price is going on this burn.

And you just keep moving up to the next CCI to see if it is going up steeply or going to fail to cross zero.

--------

excerpt from the link below re: CCI -

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:commodity_channel_in

Commodity Channel Index (CCI)

Introduction

Developed by Donald Lambert, the Commodity Channel Index (CCI) was designed to identify cyclical turns in commodities. The assumption behind the indicator is that commodities (or stocks or bonds) move in cycles, with highs and lows coming at periodic intervals. Lambert recommended using 1/3 of a complete cycle (low to low or high to high) as a time frame for the CCI. (Note: Determination of the cycle's length is independent of the CCI.) If the cycle runs 60 days (a low about every 60 days), then a 20-day CCI would be recommended. For the purpose of this example, a 20-day CCI is used.




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hiker

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Reply with quote  #2 
Jan 23

SPX 60 min, with the various CCI settings mentioned above



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hiker

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Reply with quote  #3 
record of selected price target calls today by Glen using his system described above:

Jan 26 -

12:42 time stamp

SPX $836.40 is now the downside target -

   the 60min 10-period ema

2:00 time stamp

SPX $828.96 is now the target, first tgt has been hit

2:15 time stamp

SPX target no. 2 achieved, when 827.69 reached near 2:15
  
    the 60min 20-period sma

Jan 26,  60-minute closing-basis SPX chart showing the MA's and the CCI's used by this ""CCI system":


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hiker

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Reply with quote  #4 
Feb 6th

now using the daily SPX chart for price targets based on this system (the charts shown in prior posts are 60-min SPX charts)

today, the daily CCI-20 cross above the zero line called for a price target value determined by the SPX 34-day sma, which was achieved during the day:



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hiker

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Reply with quote  #5 
April 9

XLF daily chart shown below

- let's see how reliably Glen's CCI system, as described above, works for XLF

   * several of the slower CCI's crossed above the zero line today

        ... the prior positive crosses some months ago (which were achieved with a large volume spike) by the CCI-60 and CCI-100 were immediately reversed



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hiker

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Reply with quote  #6 
June 19

BKX weekly chart

* be alert whether the BKX weekly CCI-10 and/or the CCI-34 cross below the zero line in the future



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hiker

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Reply with quote  #7 
June 24th updates for the BKX and XLF weekly charts ... to note the changes since the prior post in the various weekly CCI's relative to the zero line

* the CCI-10 for XLF needs to eventually reverse back up above the zero line if a bullish resolution is to enjoy even a hope as the expected outcome of the current gradual move below the zero line


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hiker

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Reply with quote  #8 
July 10th updates for the BKX and XLF weekly charts:

* BKX and XLF CCI-20 remains above the zero line, for now

* CCI-10 is now much lower than during the prior chart update


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hiker

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Reply with quote  #9 
July 23 intraday update -

XHB daily chart observations:

* CCI-10 to CCI-100 now reside above the zero line (at least briefly), and

* XHB price now resides firmly above the $12.25 bull/bear horizontal price line



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hiker

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Reply with quote  #10 
August 5

Glen has informed me today that some of the charts I have posted in this thread are incorrectly showing the 60-period sma instead of the 50-period sma (see his text that starts this thread which correctly states 50-period sma)

BKX weekly -

* it is timely to update this chart since $44.75 major horizontal is approached and the CCI-34 has now moved above the +100 line



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hiker

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Reply with quote  #11 
Sept 11 intraday update for:

NDX weekly chart since 2005 -

* bulls want to see the weekly CCI-100 remain above the zero line, following this brief move above it

* NDX 1687.55 marks the lower boundary of a congestion zone from 2008




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hiker

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Reply with quote  #12 
Sept 14th update for NDX weekly, closing-basis:

if a "failure" event is going to occur (failure of price to move ever higher off the March, 2009, low), this would be a reasonably logical point in the chart setup for a reversal

if only a pause occurs in the near future, then it seems likely this chart will provide a continued useful road map

be alert what occurs at NDX $1679, if tested from above in the future





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hiker

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Reply with quote  #13 
Sept 14

SPX monthly with only the CCI aspect of Glen's chart setup:

* be alert what occurs, IF SPX $1060 is tested from below

* RSI-10 resides slightly above 50, and bulls want this to achieve a sustained move above 50

* note that only CCI-10 now resides above zero, while price remains within the lower Bollinger Band zone ... will CCI-20 continue to move toward the zero line from below?

* will the 5-month moving average achieve a sustained positive cross above the 15-month moving average?



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hiker

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Reply with quote  #14 
Sept 14

sectors for the SPX and SPX daily Bullish Percent Index values since 1996, for reference with the SPX monthly chart in the prior post



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hiker

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Reply with quote  #15 
Sept 15

chart of the monthly QQQQ since 2005:

* of greatest interest to me about this chart is observing the current top of the monthly candle body relative to prior candle body horizontal resistance levels which eventually became support levels, then support later became failed support following the 2007/2008 decline ...so, it begs the question:

will the current kiss from below of this general price region eventually result  in a sustained price move into higher levels or not?



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