Working on catching extremes

I think I’m kind of in a stage for a while where I’m just trying out various things, a very experimental approach rather than a methodical step by step. However the experiments are conducted within the frame of the overall methodical process which I will not forget.

I decided to put on CCI onto my chart and just take a look at it. CCI is one of the indicators that I played with a long long time ago when I was a young lost grasshopper. I only traded CCI peak divergence, and the net goal was very similar to what it is now: picking the top and bottom when the trend looks like it will die and boost into the other direction. I really quite like the indicator. It works fantastically in range and slow trending markets, and very poorly in strongly trending markets. I put the 24 CCI and a 24h transient bar indi and noticed this:


Now, it kinda looks like it has potential, but I already have no plans of using it (in it’s current state).

1. Good correlation between CCI +\- 100 levels and where left side transient bars are located.
2. Decent job of marking extremes.
3. “Binds” real price to only go so high or so low once a CCI peak has formed

The issue is that if CCI extremes and LST bars occur in the same spot, it’s no help. So, I decided to try and rip CCI apart and create a new formula. I realize that Meridian, TCD long, etc, and the “signals” you build from them are very similar to traditional indicators. The main differences being that traditional indicators have a knack for keeping bars separate ((H+L+C)/3, Close prices, highs/lows) whereas I think the “correct” view of the market is to use TCD deltas (H-pL, L-pH) as a substitute.

First attempt:





What I’m looking for in the modded version is similar to how CCI normally functions:

1. For CCI extremes to correlate with real price extremes
2. CCI prices to oscillate between -100 and 100 most of the time

Looks decent I think, although pinpointing its effectiveness from a coding perspective will be very difficult.

Edit: Woohoo!



Given that the low isn’t taken out in the next 12 hours or so, odds are quite good price will beat 1.2766



5 thoughts on “Working on catching extremes

      1. catalin

        Thank you for your answer.It’s about your CCI indicator from charts, it looks different from the usual CCI.Of course, if it is possible.

      2. lgtrader Post author

        Yes, as is stated in the post:
        “What I’m looking for in the modded version is similar to how CCI normally functions”
        The key word being modded, or modified. However, the regular CCI is fairly similar.

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