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CCI Indicator Settings


CCI Technical traders spend hours, days and months discussing the best CCI 

indicator settings one should use. Apart from the default setting fourteen that 

many CCI traders use, others use CCI settings 8, 10, 12, or 20. Sometimes, 

a CCI trader will use a specific setting for a specific time frame. For example, 

a CCI trader may only use the CCI period fourteen on the daily and weekly 

chart, and use CCI period 10 on the hourly chart, but will also use CCI 

period 12 on the monthly chart. It is quite amazing how traders do try all sort 

of CCI settings to smooth the technical indicator or make it perform better.
Furthermore, beginners technical traders who are still trying to learn how to 

use the CCI indicator do change their CCI settings more frequently than 

anybody else. As you can see, one can spend a lot of time trying to find the 

best CCI settings without making any profit.
After trying all those settings most CCI traders settle with the CCI period 

fourteen.

Why The CCI Default Setting
Fourteen

The default setting is based on the fact that there are four quarters in one year 

of fifty-two weeks. If one divides 52 by 4, one has thirteen weeks. Note that each 

quarter is also formed of three months. Therefore, a quarterly candlestick bar is 

composed of twelve weekly candlestick bar (3 × 4 = 12). As many regard the 

number thirteen as a number that brings too much unexplained events, the 

financial markets did opt for the number fourteen instead of thirteen or twelve. 

Note also that the most influential market participants are hedge funds and 

investment banks that are primarily position traders. In effect, the position traders 

do use both the quarterly and weekly charts. In fact, the weekly chart is the quarterly 

chart's signal time frame. As one can notice, the default setting is originally destined 

for the weekly chart in view to track the quarterly chart from the weekly chart.
Nevertheless, throughout the history of the technical trading, the default CCI setting 

fourteen has served well on most time frames provided that one masters how to use 

the CCI indicator like a pro.
Truly, the default setting is for the position traders that use the quarterly chart to 

pinpoint high probability trading opportunities and use the weekly chart trading signals.

The question that remains is what is the best CCI setting. Or what is the optimum CCI 

setting? One can also ask what is the universal CCI setting?

Apart from every other CCI setting, there is the CCI period 30. In my opinion, the best 

CCI setting is thirty. Let me explain myself. When a financial instrument is trending up, 

it rises above the moving average fifty. In fact during a bullish trend the MA fifty must 

stay above MA 100, and the price should remain above the MA 50. Contrary to the 

bullish trend, the MA 50 dwells below MA 100 during a bearish trend while the price 

below MA fifty. To avoid a long explanation, please know that thirty is the sixty percent 

of 50. Note also that if one is using MA 30 and MA 50 crossover, one is effectively 

tracking the momentum of the MA 50.
Now, let us not make matters more complex by dwelling on the MA crossovers. As one 

already knows, the CCI period thirty measures the deviation of the price from the MA 30. 

In fact, one can replace the CCI 30 with the Bollinger bands thirty to a certain degree. 

There are acute similarities between the CCI period x and the Bollinger bands (x, 2). 

The CCI is also mimicking (reflecting, duplicating or smoothing) the price price action.
One of the reasons why I consider the CCI setting thirty as the best is because is based 

on the fact that the setting thirty is tracking the strength of the trend on any time frame. 

Instead of using a relative fact (something that is only true in a certain condition), one is 

working with a market stable data (market truth).
It does not matter whether one is on the daily or hourly chart, the price will be above the 

MA fifty during a bullish trend and below it in a down trend. Indeed, the TSTW 24 traders 

use the moving average 50 and 100 to gauge the strength of the trend on the first best 

time frame instead of relying on the lagging ADX technical indicator.

Our observations have shown that CCI setting thirty holds its ground on all times frame 

contrary to
other settings. By using the CCI setting thirty, one is indirectly tracking the first fifty candlestick 

bars or the strength of the moving average fifty.

Does Mean That CCI Setting Thirty Will Solve
All Technical Trading Issues?

No! The most important thing is to master how to use the CCI indicator. The best CCI setting will help those that are tired to retest the indicator on every time and concentrate on trading more precisely.

Watch the video below.



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