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To: Bob Sage who wrote (3157)	1/20/1998 2:05:00 AM
From: Bob Jagow	Read Replies (1) \| Respond to of 11149

Thanks, Bob, for making CCI crystal clear at last. Wish I'd have written that rather than having to decipher it :-) (I've [reluctantly] coded in Forth and Lisp, but that IMO was really obscure!!) Enlightened?Bob

To: Bob Sage who wrote (3157)	1/20/1998 7:09:00 AM
From: Jeff Grover	Respond to of 11149

Thanks Bob

To: Bob Sage who wrote (3157)	1/20/1998 7:12:00 PM
From: TechTrader42	Read Replies (1) \| Respond to of 11149

I haven't replied to you sooner because I haven't been able to get into SI all day. I've sent e-mail on various subjects, including the BNS scan and CCI. CCI is turning out to be a hornet's nest, and I've stuck my nose into it, unfortunately. It's clear that there are many differences of opinion on how it's formulated -- not just among us, but among TA programs. Bill R. and John S. raise a whole new issue in e-mail, about the simple moving average that is subtracted from each of the means. John uses a formula like this, in which the moving average (S) remains the same: (B-S)/(.000001+0.015((ABS(B-S))+(ABS(C-S))+(ABS(D-S))+(ABS(E-S))+(ABS(F-S)) +(ABS(G-S))+(ABS(H-S))+(ABS(I-S))+(ABS(J-S))+(ABS(K-S))+(ABS(L-S))+(ABS(M-S) )+(ABS(N-S)))/13)> -150 "TA from A to Z" would seem to support this, saying in Step 3 of the CCI formula to subtract TODAY's step 2 value (n-period simple moving average) from Step 1's value for each of the prior n-periods. But the formula I use is: cci := (B-aa)/(0.015(abs(B-aa)+abs(C-bb)+abs(D-cc)+abs(E-dd)+abs(F-ee)+abs(G-ff)+abs(H-gg)+abs(I-hh)+abs(J-ii)+abs(K-jj)+abs(L-kk)+abs(M-ll)+abs(N-mm))/13+.00001); The simple moving averages are moving back one day each time they're subtracted from the mean price. I looked in Colby and Meyers' "Encyclopedia of Technical Market Indicators," and they say: 1. Calculate each period's mean, the high plus low plus close divided by three (as you do here in your scan: B :=(high(0)+low(0)+close(0))/3 C :=(high(-1)+low(-1)+close(-1))/3 D :=(high(-2)+low(-2)+close(-2))/3 E :=(high(-3)+low(-3)+close(-3))/3, etc. and 2: Calculate the n-period simple moving average of these means. (John, following the formula in TA from A-Z, calculates this once to get today's CCI value. I calculate the moving average for each day back.) aa :=(B+C+D+E+F+G+H+I+J+K+L+M+N)/13 ; bb :=(C+D+E+F+G+H+I+J+K+L+M+N+O)/13 ; cc :=(D+E+F+G+H+I+J+K+L+M+N+O+P)/13 ; dd :=(E+F+G+H+I+J+K+L+M+N+O+P+Q)/13 ; ee :=(F+G+H+I+J+K+L+M+N+O+P+Q+R)/13 ; ff :=(G+H+I+J+K+L+M+N+O+P+Q+R+S)/13 , etc. 3.From each period's mean price, subtract the n-period simple moving average of mean prices. John gets: (ABS(B-S))+(ABS(C-S))+(ABS(D-S)), etc. I get: (B-aa)+abs(C-bb)+abs(D-cc)+abs(E-dd), etc. I'm not sure which way is correct -- or even whether there is a correct way now. Wow apparently is using a method similar to mine, because the values are nearly identical (to the hundredth of a point), but SuperCharts and Adv. Get are obviously not using that method (nor Metastock, for that matter). Brooke