Have been working on “better” indicator to show me overbought/oversold zones on my 5min INTRADAY.
Already tried most over the years: macd and sto with various tweaks, slopes etc etc etc.
Although I like RSI, I’m now working CCI (Commodity Channel Index) 5 min, as it shows me clear divergence signals, which are important, but RARELY perfect as intraday turn indicators (nothing is perfect). Also it’s available inside my “overlay” box and RSI isn’t…. need that when “stacking” indices…
I tested CCI 35, 30, 25, 20, 15 etc., and finally settled on CCI-30
at the moment, for its clarity in showing me neg/pos diverg, also because it stays put at the centerline when it is supposed to. (Note the “fails” for instance 17 Nov, when positive divergence persisted on all indices, for half the day, while price ignored it.
http://stockcharts.com/h-sc/ui?s=SPY&p= ... =249130591
YOUR MILEAGE MAY VARY… I expect to continue tweaking and revising this, just thought I’d share this GRAIN OF SALT, KOOL-AID, for potential comments. Also note: this is another “soft” indicator, based on price but averaged up the arse. Further, my “testing” is eyeballs only, not sophisticated computer backtesting.
http://www.youtube.com/watch?v=FQTzO2eR ... re=related
PS: thanks 99er, appreciate that