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would it be possible to make a cci indicator that adapts to the speed of the market. what I mean is that in congestion prices barely move while the indicator does. Is it doable to have a cci indicator that responds slower when market is in congestion (i.e. low volatility, few ticks per bar) and be more responsive when prices are moving? or is this a silly idea?
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Sinocs,
Not a silly idea at all - in fact a very interesting idea. One way might to be vary the length of the CCI period based upon recent price action. Speed up the CCI in trending markets, and slow down the CCI in sideways markets. You could vary the length from something like 8 to 20, or whatever range you would like. Perry Kaufman discusses this adaptive approach to creating indicators the book "Smarter Trading" beginning on page 133. His reference is a moving average, but the same could be done for the CCI. I wish I could offer you an example of some efs code, but I'm not very good at JavaScript yet. I'm still making the transition from TradeStation. I do have some examples of adaptive indicators I have written in EasyLanguage if that would help.
Of course, a simpler way to test your idea might be to use tick charts
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