Fractal CCI Filter: Your New Trading Ally
- Description
This indicator takes the classic fractal concept up a notch by incorporating a savvy filter based on the Commodity Channel Index (CCI). Standard fractals can throw out a lot of false signals, particularly when the market is moving sideways. However, this enhanced version only shows signals when the CCI backs up the strength of the movement, which can significantly boost your success rate.
- Main Features
- CCI Smart Filter: Fractal signals only pop up when the CCI hits extreme levels, confirming movement strength.
- Timing Accuracy: Captures the CCI value right on the signal candle, not waiting for confirmation.
- Flexible Configuration: You can adjust the CCI period and filtering threshold to fit your trading style.
- Clear Visualization: Red arrows above candles for sell signals and green arrows below for buy signals.
- Works on All Timeframes: Perfectly adapted for both real trading and Strategy Tester mode.
- How to Use It
- Sell Signals: Look for a red arrow above the candle, indicating a confirmed bullish fractal with CCI above the threshold.
- Buy Signals: A green arrow appearing below the candle signals a confirmed bearish fractal with CCI below the negative threshold.
- Confirmation: For added reliability, wait for the confirmation candle to close before diving into the trade.
- Inputs
- CCI_Period: CCI period (default: 7) - tweak this to match your strategy.- CCI_Threshold: CCI threshold for filtering fractals (default: 110) - raise this for fewer but more reliable signals.
- Usage Tips
- For reversal trades: Set CCI_Threshold between 100-110.- For trend trading: Pair it with a long-term moving average.- In volatile markets: Elevate the CCI_Threshold to minimize false signals.- During sideways markets: Lower the CCI_Period for extra sensitivity.
- Observations
- This indicator doesn’t repaint; signals are confirmed after the necessary candles close.- Signals are marked exactly on the candle where the fractal emerges, with the CCI checked on the same candle.- It’s built on solid mathematical principles of fractal detection (5 candles for confirmation).
This indicator is a collaborative effort between Joy and Qwen, elevating the traditional fractal approach with a statistically sound CCI filter.
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