Woodies CCI was introduced by Ken Wood and the system has been named after him. It belongs to the category of momentum indicator. Before focus on the Woodies CCI, let’s clear the idea about CCI or Commodity Channel Index. CCI was developed by Donald Lambert in 1980. It is a versatile indicator, by using the indicator one can recognize new trend along with reverse trends. When prices are far above its average, CCI is generally high. The article will cover the basic concept of Woodies CCI and also will provide you with a buy sell signal afl for AmiBroker (Wolrd’s best charting platform).
What is Woodies CCI?
The Woodies indicator was based on the trading pattern on the Commodity Channel Index. It is based on the 14 periods CCI. It is generally an unbound oscillator. Base value is 0 and it has no upper limit. Investors can spot a number of tradable CCI patterns in both with and against the trend. The 200 level signal is an extreme reading. To combine other signals, the indicator is often used.
Various Types of Woodies CCI Patterns
There are various types of patterns in the Woodies CCI. Our buy sell signal AFL for AmiBroker can show most of the patterns easily. The patterns are listed below:
- Hfe (Hook From Extreme)
- Zero line reject
- Trendline Break
- Divergence Trade
- Money Management
Here the blue bar represents the uptrend position of the market while red indicates a downtrend. Grey lines show a reversal of trend or trend soon going to change. The trend reverse is confirmed after five consecutive grey bar happens. After appearing yellow bar trend change conforms.
HFE or Hook From Extreme
- This pattern generally appears on plus 200 or minus 200 area, these are considered as overbought and oversold area. It is similar to the stochastic 80-20 area and RSI 80-20 area. The name itself implies its execution of the price of the current trend.
Zero line reject
- This pattern consists of two lines. CCI (20) pink in colour and turbo CCI (9) lime colour. During an established trend turbo CCI breaks – 100 or -200. trend ribbon and cci stays in blue colour, after that next bar is used for buy, for sell vice versa.
- The line break is a normal breakout, connecting 2 highs or 2 lows. The pattern works wonderfully in HFE areas and zero line areas.
- It is similar to head and shoulder pattern and a powerful pattern indeed.
- Its extreme lows or highs should contain 2 mountains breakout of the horizontal line connecting bottoms of the mountain. This is also a reversal pattern.
- It is almost similar to vegas pattern, the only difference it happens near CCI 0 line and the 2nd mountain is a small one. It is also a fast reversal pattern.
This is also similar to MACD/RSI/stoch. Here the bull price is lower low and CCI makes higher high in the long trade.
- Before taking the entry, find out how much risk is there. Do not enter the trade in between without patterns, Avoid entry near 0 line.
So, above are some basic points regarding the patterns.
Download Link of the Woodies CCI Buy Sell Signal AFL for AmiBroker
We now have created a Woodie CCI Daily Panel buy sell signal AFL for AmiBroker. You can download the Amibroker AFL from the link below.
To download the Woodies CCI buy sell signal AFL for AmiBroker,
Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.