Homeopathic indicators (CCI)

Homeopathic indicators (CCI)

1. indicator description
CCI (commodity channel Lndex) Chinese name: homeopathic indicator
This indicator was created by donaldlambert to specifically measure whether the stock price has exceeded the normal distribution range. This is a special type of overbought and oversold indicators, which fluctuates between positive infinity and negative infinity. However, it is not necessary to take 0 as the central axis. This is also different from the indicator that fluctuates between positive infinity and negative infinity. However, the overbought and oversold indexes of each category have "antennas" and "Ground Wires ". In addition to the 50 x axis index, the antennas and ground wires are 80 and 20 respectively. In addition, the antennas and Ground Wires of other overbought and oversold indicators are, they must all vary with different markets and individual stocks. The antenna and ground line of the CCI indicator are + 100 and-100. This is not only the original author's exclusive insight, but also has a big difference with the antenna Ground Wires of other overbought and oversold indicators. Readers must have a good understanding of his principles before using CCI and the bollingerbands and ROC indicators described in the following chapters.
What is an overbought and oversold metric? As the name suggests, "superbuy" is beyond the capabilities of the buyer, and the number of people who buy near stocks exceeds a certain proportion. Then, according to the "anti-Mass Psychology", we should reverse sell the stock at this time. "Overselling" means that the seller has sold the stock. When the number of people selling the stock exceeds a certain proportion, the seller should buy the stock. This is the anti-market and anti-mass theory that is often the most important under normal conditions. However, if the market is exceptionally strong, the overbought and sold indexes will suddenly lose direction and the market will keep moving forward. The masses seem to have lost control of this sort of Stock Price Behavior, CCI indicators provide different perspectives.
According to the wave theory, the stock price advances in 5 waves. In the last 5th wave of development, whether in the rise or fall wave, the market volatility is the most fierce, the most fierce, the masses are irrational crazy, the stock price in a very short period of time, acceleration completes the maximum fluctuation.
Some stockholders want to buy and sell stocks in the safest range. However, for some investors with high risks and gambling, they would rather choose a market with fast intervention and high profits in a high-risk environment. This kind of market is often a one-click, two-eye, bet fast, escape fast! It can make people bet, give gambling strong investors a smooth pleasure.
If the value ranges from 0 ~ 100 is the range of overbought and oversold indicators, specifically designed for normal market conditions. Then, the CCI indicator specifically deals with extreme market conditions. That is to say, under normal conditions, the CCI indicator will not function. When the CCI scans for abnormal stock price fluctuations, the fighter plane immediately takes off for a battle, and immediately determines the speed of the war, the victory and defeat instantly points out, And the bet must also immediately speed up escape!
Note! The "antenna" of CCI is + 100, and the "Ground" is-100. This range may also be slightly changed due to stock changes, which can be increased or decreased by readers. However, there will be no big difference in general.

2. Principles of Application

• CCI from + 100 ~ -In the normal zone of 100, it is time to seize the opportunity to break through more than 100 antennas from the bottom up.

• When the CCI falls down from the top of the antenna to the top of the antenna, the escape time is accelerated.

• CCI from + 100 ~ -In the normal zone of-100, when it falls down from top to bottom-100 earth wires, it is the time to empty the target dog.

• When the CCI breaks through the-100 ground wire from bottom to bottom, it falls into the short position of the water dog and should be paid back to buy stocks as soon as possible.