CCX - JMA demonstration
The Commodity Channel Index (CCI) is a MACD that has been normalized to a standard
scale. The CCI is quite noisy, hence we experimented with our own version of CCI using JMA.
The result is our "CCX", in which we replaced the standard moving average
in CCI with JMA. Note how CCI in the chart is much noisier and its smoothed version (red line) lags behind CCX at
reversals.
The chart below shows a simple trading strategy that enters LONG whenever the CCX oscillator crosses above the lower threshold line and enters SHORT whenever CCX crosses below the upper threshold line. Blue lines connect winning trades and red lines connect losing trades.
The trading strategy shown above is NOT included with
the Jurik Technical Indicator Toolset.
This was shown for demonstration purposes only.
|