Woodies protrader1/4/2023 ![]() Woodies protrader how to#Indeed, some of the best day traders don’t know how to calculate the Woodies CCI (and many other indicators). However, like we have written before, as a trader you should only focus on how to apply the indicator and use it. Calculating both the CCI indicator and the Woodies CCI can take time. The chart below shows the EUR/USD pair with the CCI and the Woodies CCI indicator. ![]() Its colors are yellow, lime, light green, dark green, cyan, light orange, dark orange, light red, and dark red. The chop zone, on the other hand, is plotted on the +100 and -100 levels to visualize the difference in between close price and its EMA. Finally, when it is red in color, it shows that there is no trend. On the other hand, when it turns yellow, it means that the trend is developing. In most cases, when its price turns green, an assets price is usually trending. Sidewinder, which is plotted on the +200 and -200 levels, takes into account the relationship between the EMA and LSMA of a price. There are other parts of the Woodies CCI indicator known as sidewinder and chop zone. + and – 100 – The two are the least squared moving average prices.Zero line – This line is the main support and resistance level and is shown in black.Trend CCI – This is the CCI indicator.According to Ken Wood, the setting for this turbo should be set at 14. CCI turbo – This line is used to determine the trend and determine areas of entering the price.The Woodies CCI is a modification of the indicator. ![]() When applied, the CCI measures the present price of an asset relative to the average price over a given period of time. ![]() In this case, the typical price is calculated by finding the average of the high, low, and closing prices. The CCI is calculated using the formula below: CCI = (Typical Price – 20-period SMA of TP) / (0.015 x Mean Deviation) Today, it is used in trading all assets, including currencies, commodities, equities, and exchange-traded funds (ETFs), among others. The CCI is an oscillator that was developed by Donald Lambert in the 1980s with the eye on the commodity’s market. ![]()
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