You ask less than 1/3 of what and why. As for what, less than 1/3-1/4 of the cycle associated with the periodicity in price during the period of interest (e.g., 5 years of weekly data, 1 week of 1 minute data, etc.). As for why, the inventor of CCI (forgot his name) specified 1/3 in order to find the cyclical trend while keeping the mean deviation in the denominator of CCI from becoming too noisy but others feel that even smaller is better. Typically 14-20 is recommended but even shorter values are used especially for daytrading. As for references, the better TA textbooks discuss this stuff and I'm sure that you can find much on the net with Google. It is not the holy grail, requiring judgment calls with respect to deviation vis-a-vis price, crossing of +/- 100, 200 levels, etc. As with all indicators, it certainly should not be used in a vacuum but with other indicators, chart analysis, crystal balls, moon phases, etc. Hope that addresses your questions.
Bill ----- Original Message ----- From: "Gerard Carey" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Tuesday, March 13, 2007 3:48 AM Subject: [amibroker] Re: DOW WAVES..... and the recent fall in the DJI > Hi Bill > Less than 1/3 (some say 1/4) > Of What? Why? > Could you elaborate, or give me a link pse. > Always interested in new perspectives. > Regds and thanks > Gerard > > --- In [email protected], "wavemechanic" <[EMAIL PROTECTED]> wrote: >> >> The time period for CCI() should be less than 1/3 (some say 1/4) > cycle. This argues for a time period much below 200 for daily ^DJI. >> >> Bill >> >> ----- Original Message ----- >> From: "brian.z123" <[EMAIL PROTECTED]> >> To: <[email protected]> >> Sent: Monday, March 12, 2007 7:58 AM >> Subject: [amibroker] Re: DOW WAVES..... and the recent fall in the > DJI >> >> >> > Gerard, >> > >> > Bad news and good news. >> > >> > I have put up a DowIndicator PDF in the group files (2 pages of >> > comment). >> > >> > The bad news is I critique your indicator a little. >> > >> > Good news is I brought along her sister, who is not too bad > looking >> > at first glance. >> > >> > BrianB2. >> > >> > --- In [email protected], "Gerard Carey" <gcfinance@> >> > wrote: >> >> >> >> For those interested in the indicator, Mr Dow gives us here, > just a >> >> slightly different slant on how to view the market (and our >> > indicator). >> >> >> >> Charles Dow, in the "Wall Street Journal", January 31, 1901: >> >> "A person watching the tide coming in and who wishes to know the >> > spot >> >> which marks the high tide, sets a stick in the sand at the points >> >> reached by the incoming waves.......... >> >> >> >> Again I've put the guff on an attachment to spare the > uninterested. >> >> >> >> Regds and good trading >> >> Gerard >> >> >> >> -- >> >> http://www.fastmail.fm - I mean, what is it about a decent email >> > service? >> >> >> > >> > >> > >> > >> > >> > Please note that this group is for discussion between users only. >> > >> > To get support from AmiBroker please send an e-mail directly to >> > SUPPORT {at} amibroker.com >> > >> > For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG: >> > http://www.amibroker.com/devlog/ >> > >> > For other support material please check also: >> > http://www.amibroker.com/support.html >> > >> > Yahoo! Groups Links >> > >> > >> > >> > >> > >> > >> > -- >> > No virus found in this incoming message. >> > Checked by AVG Free Edition. >> > Version: 7.5.446 / Virus Database: 268.18.7/711 - Release Date: > 3/5/2007 9:41 AM >> > >> > >> > > > > > > Please note that this group is for discussion between users only. > > To get support from AmiBroker please send an e-mail directly to > SUPPORT {at} amibroker.com > > For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG: > http://www.amibroker.com/devlog/ > > For other support material please check also: > http://www.amibroker.com/support.html > > Yahoo! Groups Links > > > > > > > -- > No virus found in this incoming message. > Checked by AVG Free Edition. > Version: 7.5.446 / Virus Database: 268.18.9/719 - Release Date: 3/12/2007 > 8:41 AM > >
