CCI with Signals & Divergence [AIBitcoinTrend]

👽 CCI with Signals & Divergence (AIBitcoinTrend)
The Hilbert Adaptive CCI with Signals & Divergence takes the traditional Commodity Channel Index (CCI) to the next level by dynamically adjusting its calculation period based on real-time market cycles using Hilbert Transform Cycle Detection. This makes it far superior to standard CCI, as it adapts to fast-moving trends and slow consolidations, filtering noise and improving signal accuracy.

Additionally, the indicator includes real-time divergence detection and an ATR-based trailing stop system, helping traders identify potential reversals and manage risk effectively.



👽 What Makes the Hilbert Adaptive CCI Unique?
Unlike the traditional CCI, which uses a fixed-length lookback period, this version automatically adjusts its lookback period using Hilbert Transform to detect the dominant cycle in the market.

✅ Hilbert Transform Adaptive Lookback – Dynamically detects cycle length to adjust CCI sensitivity.
✅ Real-Time Divergence Detection – Instantly identifies bullish and bearish divergences for early reversal signals.
✅Implement Crossover/Crossunder signals tied to ATR-based trailing stops for risk management

👽 The Math Behind the Indicator
👾 Hilbert Transform Cycle Detection
The Hilbert Transform estimates the dominant market cycle length based on the frequency of price oscillations. It is computed using the in-phase and quadrature components of the price series:

tp = (high + low + close) / 3
smooth = (tp + 2 * tp[1] + 2 * tp[2] + tp[3]) / 6
detrender = smooth - smooth[2]
quadrature = detrender - detrender[2]
inPhase = detrender[1] + quadrature[1]
outPhase = quadrature[1] - inPhase[1]

instPeriod = 0.0
deltaPhase = math.abs(inPhase - inPhase[1]) + math.abs(outPhase - outPhase[1])
instPeriod := nz(3.25 / deltaPhase, instPeriod[1])
dominantCycle = int(math.min(math.max(instPeriod, cciMinPeriod), 500))

Where:

• In-Phase & Out-Phase Components are derived from a detrended version of the price series.
  
• Instantaneous Frequency measures the rate of cycle change, allowing the CCI period to adjust dynamically.
  
• The result is bounded within a user-defined min/max range, ensuring stability.
  

👽 How Traders Can Use This Indicator
👾 Divergence Trading Strategy

Bullish Divergence Setup:

• Price makes a lower low, while CCI forms a higher low.
  
• Buy signal is confirmed when CCI shows upward momentum.
  

Bearish Divergence Setup:

• Price makes a higher high, while CCI forms a lower high.
  
• Sell signal is confirmed when CCI shows downward momentum.
  

👾 Trailing Stop & Signal-Based Trading

Bullish Setup:

✅ CCI crosses above -100 → Buy signal.
✅ A bullish trailing stop is placed at Low - (ATR × Multiplier).
✅ Exit if the price crosses below the stop.

Bearish Setup:

✅ CCI crosses below 100 → Sell signal.
✅ A bearish trailing stop is placed at High + (ATR × Multiplier).
✅ Exit if the price crosses above the stop.

👽 Why It’s Useful for Traders

• Hilbert Adaptive Period Calculation – No more fixed-length periods; the indicator dynamically adapts to market conditions.
  
• Real-Time Divergence Alerts – Helps traders anticipate market reversals before they occur.
  
• ATR-Based Risk Management – Stops automatically adjust based on volatility.
  
• Works Across Multiple Markets & Timeframes – Ideal for stocks, forex, crypto, and futures.
  

👽 Indicator Settings

• Min & Max CCI Period – Defines the adaptive range for Hilbert-based lookback.
  
• Smoothing Factor – Controls the degree of smoothing applied to CCI.
  
• Enable Divergence Analysis – Toggles real-time divergence detection.
  
• Lookback Period – Defines the number of bars for detecting pivot points.
  
• Enable Crosses Signals – Turns on CCI crossover-based trade signals.
  
• ATR Multiplier – Adjusts trailing stop sensitivity.
  

Disclaimer: This indicator is designed for educational purposes and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.