That is accepted. Millard's concept of CCA is elegant but simple and I use it to predict time and price opportunities in the market. It is a powerful method to indicate future periods of exceptional probability of a price reversal. Once the opportunities have been identified, other means can be used to pinpoint the timing of entry or exit. In this article, I will outline Millard's method of channel analysis and then describe how the CCI can be used to pinpoint the time for entry and exit.
Some technicians place the moving average value on today's date.
This is mathematically incorrect. Prices fluctuate around the average, forming a channel of variance about the average. A channel of variance can be drawn so that the lines of the channel passes through most of the extremes of the variance. If we can identify the channel of variance, then we can measure the amplitude of the cycle. 5 year subscription to Working Money.