A basic Commodity Channel Index (CCI) indicator measures the position of price relative to the moving average of the security’s price and normal deviation from the moving average. CCI uses this measurement to determine when a security is overbought or oversold. Woodie’s CCI is a plug-in that automates an approach developed by Ken Woodie. Woodie’s approach uses the CCI indicator to find particular patterns in the market.

The Woodie’s CCI Plug-in is designed to find short-term trading opportunities using a series of systems, indicators, and stops developed by Nirvana Systems. In addition to targeted systems, indicators, and stops, the Woodie’s CCI plug-in includes strategies designed to help you find specific setups.

The Woodie’s Ghost pattern is a counter-trend pattern and resembles a head and shoulders pattern but does not have to meet the same rules as the head and shoulders pattern. For example, the Woodie’s Ghost pattern does not have to cross the neckline for the pattern to be complete.

The Woodie’s Horizontal Trendline Break pattern can be traded both counter-trend and with the trend. This pattern is identified by peaks and valleys that line up to across the chart to form a line break. When the line is broken, a trade is signaled.

The Woodie’s Reverse Divergence pattern is formed when the CCI approaches or crosses the zero line, turns back toward the previous levels, then repeats this same process again with the second pattern appearing more pronounced. The Woodie’s Reverse Divergence is a trend agreement pattern.

Woodie’s Shamu pattern is formed by the reversal of a Zero Line Reject pattern. That is, the pattern occurs when the CCI approaches or crosses the zero line, turns back toward previous levels, then reverses direction again. It is sometimes also called Woodie’s Famir Pattern. The CCI does not have to break the level of the zero line for a Shamu Pattern to be complete. This is a counter-trend pattern.

Woodie’s Vegas pattern is formed by the CCI retreating from an extreme, followed by a rounding of the CCI, then a reversal which moves past the recent extreme. This is a counter-trend pattern.

A Zero Line Reject pattern occurs when the CCI approaches or crosses the zero line then turns back toward the previous levels. This is a trend agreement pattern.

In addition to the systems above which generate signals, the Woodie’s CCI plug-in also uses the following additional systems for confirmation signals:

• Commodity Channel Index Crossover (CCI-C)

• Commodity Channel Index Zero Line Crossover (CCI-ZLC)

• Woodie’s Commodity Channel Index Trendline Break (WCI-TLB)