StockFetcher Forums · General Discussion · CCI(10) vs CCI(30)<< 1 2 >>Post Follow-up
BFreshour
139 posts
msg #44500
Ignore BFreshour
6/1/2006 6:07:57 PM

I'm really starting to study divergences, both standard and hidden. Why would a stock (actually a currency on Forex) display the following trait:

Currency: Higher Lows
CCI(10): Higher Lows
CCI(30): Lower Lows (divergence)

Currency rockets up! Had I been using the longer CCI I would have seen the divergence...

Anyone have any thoughts?


alf44
2,025 posts
msg #44501
Ignore alf44
6/1/2006 6:19:37 PM

...hmmm that's an interesting CCI combination !

Let's see...where have I seen that before ?

Oh...wait...that's exactly what I use ! LOL


BFreshour
139 posts
msg #44512
Ignore BFreshour
6/1/2006 11:11:16 PM

alf, thanks for your reply. I did get the CCI's from you, simply trying to figure out how the heck you use them and how they detect divergence. My questions is:

IF

PRICE MAKING LOWER LOWS
INDICATOR MAKING HIGHER LOWS

is divergence, wouldn't the opposite be true also?

PRICE MAKING HIGH LOWS
INDICATOR MAKING LOWER LOWS

Not sure, just a question. As I said, I'm just now really starting to learn about divergence and their significance, or lack thereof. I find myself wondering if I'm making up divergence, LOL.

Look at this chart:

http://stockcharts.com/h-sc/ui?s=KGC&p=D&b=5&g=0&id=p05255140446

Notice back February and March, the stock was making lower lows yet CCI(30) was making higher lows. That to me is 'bullish divergence' which explains why the stock shot upward.

Ok, now then, from the $8.77 mark to the most recent low $10.26, the stock makes a higher low, but CCI(30) makes a lower low. I call this 'reverse divergence'and it's also a bullish sign. I maybe wrong, but I'm listening. ;)




alf44
2,025 posts
msg #44515
Ignore alf44
modified
6/1/2006 11:49:59 PM

Bfresh,

I will elaborate on my CCI(10) / CCI(30) combination...if you'd like !

It IS a rather lengthy rationale !

If you DO want me to elaborate...be patient...to do it justice I will need a day or so !

There IS a WEEKEND approaching and I want to give the reply the attention it deserves !!!

GLTY


Regards,

alf44



BFreshour
139 posts
msg #44517
Ignore BFreshour
6/2/2006 12:03:06 AM

alf44, I'm all about learning new stuff... whenever you get time.


alf44
2,025 posts
msg #44504
Ignore alf44
modified
6/2/2006 12:27:02 AM

Bfresh,

First, I'm not sure I neccesarily agree with your "divergence" observations. Typically, a "Bullish Divergence" (wrt, some Momentum Oscillator and in this case a CCI) would be displayed by Price making a Lower Low and the CCI making a Higher Low.

"Momentum preceeds Price !!!"

On the other hand, I think you are seeing the 2 CCIs as "diverging" from one another...and thus using THAT in your "divergence" definition.

Do you see the distinction there ?

Literally speaking...they ARE diverging from one another...Figuratively speaking...that MAY or MAY NOT adhere to the normally recognized definition of true "momentum divergence."

Oh well ! Moving on !


Secondly, you go on to describe this scenario:

Currency: Higher Lows
CCI(10): Higher Lows
CCI(30): Lower Lows (divergence)

If I understand you correctly, I would just say that...

...the shorter term CCI(10) will OF COURSE respond quicker to changes in Price Action...because it is based on a 10 period Average of Typical Price (Typical Price = H+L+C/3) !

...the longer term CCI(30) will OF COURSE lag the CCI(10) and therefore respond less quickly to changes in Price Action...because IT is based on a 30 period Average of Typical Price !!!

Just some thoughts !


Regards,

alf44



alf44
2,025 posts
msg #44518
Ignore alf44
modified
6/2/2006 1:21:30 AM

Bfresh,

Quickly...before you go...look back at my "chart set-up" from your "Favorite Values" thread !

Do you see any connections/similarities/continuities...between my EMA periods and my CCI periods ?

------------------------

In looking at your Kinross Gold Chart (KGC)...I see an EMA(20) and an EMA(50)...yet you also use...a CCI(10) and a CCI(30) !!!

Continuity...my brother !

There MUST be CONTINUITY !!!

Think about it !


Regards,

alf44



nikoschopen
2,824 posts
msg #44520
Ignore nikoschopen
6/2/2006 1:29:59 AM

Alfie,

As a long time CCI user, I'm all ears as well.


alf44
2,025 posts
msg #44516
Ignore alf44
modified
6/2/2006 2:15:00 AM

...OH...I almost forgot...I WILL be smoking pot with Lynard Skinard and doing wine vinyard deals with Motley Crue burnouts...so...better give me SEVERAL "DAZE" to reply !!!

ALSO...I will be peddlin' my "StockFetcher HolyGrail Filters" on eBay for nickles and dimes...and...don't forget...I am also under the "gag restrictions" of my "Gordon Geckoesque" Wall Street employer !


ROFL


Regards,

alf44




nikoschopen
2,824 posts
msg #44626
Ignore nikoschopen
6/5/2006 4:12:58 PM

Making any progress there, Alfie? If you don't mind, I also would like to see ure filter for this setup.

Thx


StockFetcher Forums · General Discussion · CCI(10) vs CCI(30)<< 1 2 >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus