Of course I have read your long post...excellent and comprehensive
An added very advanced concept (alert: definitely not for beginners)- The importance of the one deviation concept.
would like to say that any CCI say 20, is the relationship between price and its moving average, CCI is price itself, now centerline of CCI 20 (o line) is moving average 20, but you really have another (quasi) two moving averages of 20 north and south of it, the +100 and the -100 line. Each separated by one deviation from the mean, or the zero line. so on the chart, you can have the same two more moving averages IF you use the 20 bb one deviation, and the distance between the upper 20.1 and the mean is one deviation, similarily, the distance between the lower bb20.1 and the mean or 20 moving average is one deviation.
Door to door, space between upper and lower bb20.1 is 2 deviations. which is responsible for most of the action above and below mean.
bb20.2 is really 2 deviations above and 2 deviations below the mean, so the price ALL IN is trapped between 4 deviations door to door..
p.s.: 1. the reason I say quasi moving averages above is beyond the scope of this discussion and is not really important, I just want to say they resemble the moving average 20 to a great extent.
2. If your software allows to have the upper bb based on the high and the lower bb based on the low rather than the close...then the ATR concept comes in and this is why I believe bollingers beat Keltner channels by far.
AI
