VariablePeriodCCI

Background

The Commodity Channel Index (CCI), developed by Donald Lambert, measures how far price has moved away from its statistical mean. It compares the current price to a moving average and scales that difference by the average mean deviation, so most readings fall within a band of roughly −100 to +100. Traders use it to spot overbought and oversold conditions and to flag the start of new trends when price pushes beyond those bands.

A normal CCI uses a fixed look-back. VariablePeriodCCI takes a period for each bar instead, so it can tighten or widen its window as market conditions change. The per-bar periods usually come from an adaptor such as the DominantCycle, or from any array you supply.

Included formula

The toolbox ships a ready-made Adaptive Smoothed CCI indicator built on this function, so you can use it without writing any code. In AmiBroker open the Charts window, expand the WiseTraderToolbox group and drag Adaptive Smoothed CCI onto a chart.

It plots the CCI in its own pane below price, with optional overbought/oversold threshold lines and a signal line. A built-in system marks buys and sells — you choose whether they come from the signal-line crossovers or from the CCI crossing the thresholds — and the same formula can be run as an Exploration from the Analysis window to scan a watchlist for the latest signal. The Adaptor you pick produces the per-bar period this function needs, an optional Smoother cleans up the input first, and the colours, thresholds and bounds are all adjustable.

The exported function

If you would rather build your own formula, the toolbox exports the calculation as a single AFL function you can call directly — it is the engine inside that indicator.

Usage

periods = DominantCycle( Close );
cci = VariablePeriodCCI( ( High + Low + Close ) / 3, periods );
Plot( cci, "Adaptive CCI", colorRed );
Plot( 100, "", colorGrey40, styleDashed | styleNoLabel );
Plot( -100, "", colorGrey40, styleDashed | styleNoLabel );