How do you read a Woodies CCI?
Defining the trend with Woodies CCI If the bars are above zero and green, the trend is ascending. If they are below zero and red, the trend is descending. Note that the color of the bars does not change right after crossing zero; six subsequent bars above or below zero are required for the color to change.
What is CCI indicator used for?
The Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.
Is the CCI indicator accurate?
The Commodity Channel Index (CCI) is useful for analyzing overbought and oversold conditions, writes Brandon Wendell, CMT, but its lagging nature makes it an unreliable generator of buy and sell signals.
What is Woodies commodity channel index (CCI)?
The Woodies Commodity Channel Index (CCI) is a technical indicator that is a slight modification of the traditional CCI indicator. It was proposed by Ken Wood, who is also well-known for the Woodies pivot point system.
What is the CCI indicator?
Woodies CCI is a momentum indicator that was developed by Ken Woods. It’s based on a 14 period Commodity Channel Index (CCI). It’s a fully unbounded oscillator with a base value of 0 and has no lower or upper limit.
What is the slow CCI indicator in Woodies?
Besides a histogram for the slow CCI, which, depending on the conditions, is colored in different colors, was added into Woodies CCI. indicator’s values oscillate near zero line and do not have an upper and lower bound. The high indicator’s value indicates the “overbought” price at the moment, a low value indicates the “oversold” price.
What does the green bar mean on the Woodies CCI indicator?
When the Woodies CCI indicator remains above the zero line for six bars or longer, the next bar gets green. When the indicator remains below the zero line for six bars or longer, the next bar gets red. The base line is at zero. The fifth element is the support and resistance line.