Commodity Channel Index Plus

WHAT IS IT?

The Commodity Channel Index (CCI), developed by Donald Lambert, measures the deviation of price from its statistical mean. It oscillates around zero, traditionally used to identify overbought and oversold conditions and trend momentum using the +100 and -100 levels. The standard version uses a fixed period and linear scaling, producing noisy output in choppy markets and delayed signals in trending ones.

INDICATOR PRIME IMPROVEMENTS

Commodity Channel Index Plus applies an R² adaptive smoothing engine that scales the effective period based on trend linearity. In strong trends a longer effective period filters out false reversals. In choppy conditions it shortens for faster responsiveness. A signal line (EMA of CCI) is added, and their difference forms a histogram. Cross signals require two bars of histogram momentum, an ADX chop filter, R² trend gate, micro-crossover guard, and a cooldown. Regular and hidden divergence detection operates on confirmed pivots.

HOW TO USE

The primary signal fires when CCI crosses its signal line from below zero (bullish) or above zero (bearish) while ADX and R² conditions pass. The +100 and -100 levels serve as contextual overbought and oversold references. CCI divergence lines on the chart provide early warning that trend momentum is fading before the oscillator actually crosses zero.

KIT CONFLUENCE

Commodity Channel Index Plus provides the price-deviation dimension in the Oscillator Kit. Combine with Aroon Plus (time-based trend) and Smart MACD (momentum): when CCI crosses zero bullishly, Aroon Up is above 50, and the MACD histogram is building, the setup has three independent indicators aligned, each measuring a different aspect of market strength.

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