K2 CCI Pro Trading View Indicator
K2 CCI Pro Trading View Indicator
The K2 uses a fast and slow Commodity Channel Index to measure momentum and determine the direction and strength of trends. The K2 uses the values of both CCI’s in relation to their upper and lower bounds, as well as their historical standard deviation, to ensure entries at absolute bottoms and exits at absolute peaks.
Why Those Indicators?
Already a valuable leading indicator, the Commodity Channel Index becomes even more powerful when fast and slow versions are utilized.
The graph appears similar to the famous K2 mountain. The fast CCI is shown in light blue, while the slow CCI is shown in white. The red line at the bottom can be thought of as the base camp. When both CCI values fall below this line, it is almost time to enter a long position and start your ascent up the mountain. The upper green line, on the other hand, represents the upper bound for the CCI values. Think of this as the summit of the mountain. Once both the fast and slow CCI’s cross this line, a long exit signal will be fast-approaching.
What is it Used For?
The K2 is best used for long trading on 15 minute intervals.
How to Use It
When the fast and slow CCI’s are both above the upper line, and the graph resembles a snow-capped mountain, an exit signal will arrive soon.
When it is time to sell, a thin vertical red line is plotted on the graph. Conversely, a thin green vertical strip is plotted to signal entry points.
Users can adjust the lengths of the fast and slow Simple Moving Average(SMA) in the input options menu. It is important to always keep the length of the slow SMA greater than the length of the fast SMA as their difference is a key ingredient to the K2's accuracy.
Another important feature is the ability to adjust the CCI constant used in the calculation of the two CCI's. Usually, it is recommended to adjust this value in response to changes in the length of the typical price SMA. A value of 0.015 is recommended for scalping and 0.018 for swing trading, although users should run backtests in the strategy version to identify the best settings for their intended goals and usage.
Adjusting the Upper and Lower bounds for the K2 is another modification that will depend on the trader's desired use. For example, decreasing the upper bound and increasing the lower bound will result in more frequent, smaller trades.
Lastly, we've included the ability to utilize a stop-loss(although its not required and will be ignored if set to 0).
When it is time to enter a long position, an alert with the following message will be delivered: “The K2 - Enter Long”.
When it is time to exit a long position, an alert with the following message will be delivered: “The K2 - Exit Long”.
When users purchase Profit Programmers scripts, they gain access to both the strategy and study versions. The purpose of the strategy is to help traders finetune the many input options and run backtests with these different settings to discover the optimal settings for achieving the best results for their specific intended purpose. Unfortunately, TradingView does not allow you to create alerts using a strategy script, so the best way to work around this is to spend time tweaking the various settings in the strategy script, compare the results and then implement those settings into your study through the study script’s input menu. This way, your alerts will still be delivered and you can be confident that those alerts are being generated based on the settings that you achieved the best backtesting results with. This is useful for both high frequency day traders and those implementing automated trading systems (‘bots’) which rely on alert messages to stay up to date; or execute trades automatically in the case of trading bots.
All strategies include input options which allow users to execute backtests with specific stop and limit percentages. If users do not wish to use a limit or a stop, they can set those input values equal to 0.0 and the strategy will ignore those parameters when running its backtest.
Lastly, traders can adjust the date range on which the backtest is performed. This is great for gaining insight on how the indicator responds during various market conditions(ie: How should I tweak the settings when the market is in a long term bear/bull run? How did it respond during the sharp price increase in x month of y year?).
Some Backtesting Results-
How to install-
Enter your TradingView user name into the forum on the product page when you purchase the indicator.
Within 24 hours our team will validate the username and purchase, which will let them send you our invite only scripts
Your indicator will be shown in the "invite only scripts" category under your "Indicator" panel in Trading View
*We have no affiliation with TradingView.com, we purely sell studies and strategies based off the proprietary pine script language used on Trading View