55 Woodies Commodity Channel Index

The Woodies Commodity Channel Index (CCI) indicator is a modification of the original CCI indicator that is used by traders to help determine turning points. The Woodies CCI indicator consists of two CCIs that are set with the periods 6 and 14, one being a fast curve that is used to track and foresee the movement’s of the slower CCI, the other a slow curve. A histogram is also used to track the results of the slow CCI and is expressed with various colors.

It can be simmplified to a single indicator by substracting the two lines, which may help to indicate crossovers.

Figure 8.74: woodies