12-29-2008, 01:30 PM
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#33 |
Join Date: Aug 2008 Location: Bangkok Thanks: 4
Thanked 21 Times in 17 Posts
| Re: CCI 50 for Momentum Determination You have done so much for this forum, I hope this is a bit interesting. The chart is of MSFT in a side moving market with some smooth and choppy trends. The smooth up trend beginning in Oct 2005 shows how the RSI 7,4 works, with a near 50% of up trend on the RSI upper margin cross, also a decision point price resistance from the 1st of October. You may be able to see how the RSI caught the 25% trend retrace and the 50% on the backside in December. The original point was that outside the 30 and 70 margin lines shows strong trending. I yellowed the 50 level of the indicator, because I know how you like crossovers, and this is a bit like a normal CCI.
As for the momentum oscillator, the levels for crossover are up to you, depending on the size of trend you are targeting. They are used for bollanger breakouts to see direction and supporting momentum. You can see a bit of how the 2 indicators sync in the above mentioned October -December 2005 trend.
I had a system of keltner band breakouts and RSI margin crosses combination, but I don't use it much. Anyhow shared ideas, new perspectives.
Last edited by Eric Johnson; 12-29-2008 at 01:36 PM.
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