FXCodeBase.COM: Forex Chart Indicators and Development

Rubicons wrote:I would like someone to please develop this oscillator, which I call "Rubicons CCI-Cross" and share it with the group here.

The Commodity Channel Index (CCI) is an oscillator originally developed by Donald Lambert and featured in his book "Commodities Channel Index". The CCI like most oscillators, helps to determine overbought and oversold levels. There is an interesting variant to the standard set-up that I have been using succesfully for some time and would like to share with you.

What is Rubicons CCI-Cross: Basically it is a standard 10 Period CCI with a 3-EMA exponential moving average layered over it. In addition, there are two horizontal lines for resistance and support at the +100-Level and -100-Level respectfully. If possible, having the ability to select line colors would be great as many trade on different backgrounds - for example I trade on a black background.

How to use it: In addition to standard angle and separation (and divergence) signals are best given when they occur above and below the +100 and -100 Levels first by a cross of the 3-EMA with the CCI-10, and then confirmed when the 3-EMA also crosses the 100 and 0 level horizontal lines either long or short. For example, a 3-EMA cross from above and heading south through the +100 Level confirms a Short. Likewise, a 3-EMA cross from below heading north through the -100-Level confirms a Long.

This indicator should of course be confirmed with related Price Action and any other tools you may wish to use. However, I have found this to work on most timeframes and gives you an earlier signal (heads-up) than many others.