Theory :
The idea for this indicator is as simple as it gets : a lot of times we are using some indicator levels as a signal that some desired level is reached and that the price change is to be used as an entry or exit price for our orders / positions. That is all OK but many times we simply are comparing the prices only visually. This indicator is a sort of a "helper" for that. What it does :
- it waits for a level break (CCI in this case)
- if it was broken, then it checks if a new trend line at the chart should be displayed
- if it remains in the over bought or oversold area, it adjusts the existing SR level displayed on chart
- if it retraces in to the neutral zone, the line update is canceled and a new signal is waited for
Th indicator, as it is, is mainly meant to be used in manual trading.
Usage :
The same as any CCI.
PS:
The "big picture" example that shows in a more clear way how the indicator works and what is it showing us on chart
