by Gilles » Tue Feb 14, 2023 1:27 pm
Hi Apprentice,
In one of your messages, you specified the following:
"For normalization, I use period Min, Max. Is there another method you would like to use? "
However, I believe normalization should be done following these guidelines:
The normalized Commodity Channel Index (CCI) is calculated by dividing the CCI by its standard deviation over a given period (14).
The formula I suggest using to calculate the normalized CCI is as follows:
Normalized CCI = (CCI - CCI's simple moving average) / (0.015 x CCI's standard deviation)
where:
CCI is the Commodity Channel Index.
CCI's simple moving average is the simple moving average of the CCI over a given period (usually 14 periods).
CCI's standard deviation is the standard deviation of the CCI over the same period as the moving average.
Thank you very much, Apprentice! :)