CCI measures the variation of price to its mean. The action you speak to says the mean over x periods has changed so the variation is higher. I don't see that much, I use the -150, 0, +200 as trigger lines. If you trade off every little movement in an indicator, you can drive yourself crazy.
Everyone's software differs to a degree on CCI,RSI, and others. You have never said what you use. logic says that internet charts, keeping the size of download down, may take some shortcuts for computational speed. I prefer not to use WOW for CCI or MSWIN's CCI (equis), instead use the standard version in MSWIN or GET. But even with the same computation, you have to choose a entry point or trigger. It is based on your mindset, I use first upmove thru -150 after being below. a move back below this point would make me leary of the stock, I would expect a move up over the next 1-2 weeks. A move over +200 would cause me to think that stock has only 1-3 days before a correction. a move back to 0 level would allow re-entry if other indicators suggest trend is in place and up. |
