Sunday, 2 September 2012

Update: Advanced CCI with Bollinger Bands

In the previous post Advanced CCI was producing too many bad signals, and not enough of the good. So, I applied a filter of sorts: Bollinger Bands.

Now, the indicator I've made is nothing new. I've seen this type of indicator running around on various trading sites. The only difference is that I programmed the CCI indicator to have a Bollinger Band array attached to it (this was made very easy by MetaTrader with the iBandsOnArray function), rather than dropping the Bollinger Bands on the CCI indicator every time.

So here is a comparison of the old Advanced CCI and the new filter one (the larger arrows are the new, and the smaller arrows are the old Advanced CCI; also, the chart is smaller than the previous post because I'm using a different computer):

The combo does cut back the amount of false signals compared to the old Advanced CCI indicator, but sadly even this nice, new filtered indicator still produces false signals. Stilling working on perfecting it just a little bit more, but so far not bad :).