Hey traders! Today, let's dive into the Smoothed CCI (Commodity Channel Index) indicator for MetaTrader 5. If you’re familiar with the original CCI, you know it’s calculated using mean absolute deviation. But this version takes a different approach by using standard deviation instead.
One of the main reasons the CCI doesn't get more love from traders is that it can be a bit too 'jittery'. To tackle this, the Smoothed CCI incorporates double smoothed Wilders EMA, which helps to calm things down a bit. Signals are generated on zero crosses, making it easier to spot potential trading opportunities.
Just a heads up: this indicator is part of the 'need-for-speed' series, making it perfect for those who love using custom calls. If you set the EMA period to <=1, you'll get something that resembles the traditional CCI. However, don’t get it twisted—since this version uses standard deviation, it's not the same as the built-in CCI.
Happy trading and stay sharp!
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