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2018issue C0150-56

Treat CAM as a classification layer before confirmation becomes an entry

CAM classifies each bar by whether ADX and MACD are rising or falling. Treat those four painted states as a filter first, then decide whether a confirmation filter is allowed to turn selected states into next-open entries.

  • CAM is a four-state bar classifier built only from whether ADX and MACD are rising or falling on the latest bar.
  • CCI sign and a close versus a short exponential average are optional confirmation filters, not part of the four-state definition.
  • A historical countertrend sketch converts only some confirmed CAM-PB and CAM-CT states into next-open buys, and it exits a long after a confirmed CAM-DN state.
  • The notes warn that color filters alone may not be sufficient and suggest using the combination on names already judged to trend.
Entries in this reading3 entries
Current trackCommodity Channel Index40 readingsAverage Directional Index71 readingsMACD115 readings

A two-series classifier

The platform notes implement CAM as a four-color bar classifier. On the latest bar they record only whether ADX is rising or falling and whether MACD is rising or falling. Those two directions are the whole four-state definition. They do not, by themselves, say to buy or sell.

The four CAM states

CAM-UP is both series rising, painted as the upward-trend state. CAM-PB is both series falling, painted as a pullback or pause inside an existing trend. CAM-DN is ADX rising while MACD is falling, painted as the downward-trend state. CAM-CT is ADX falling while MACD is rising, painted as a countertrend rally or rebound.

Color and text report the same state

The published EasyLanguage study paints each bar with a user-chosen color. Off the chart it reports the same state as text, so the color and the label are two views of one classification.

Confirmation stays outside the four states

Other implementations treat CCI and a short exponential average as optional confirmation around CAM colors rather than as part of the four-state definition. That extra check is a confirmation filter. It is used to suppress CAM color changes that do not match the broader price context.

A sketch that converts only some states

One coded countertrend sketch buys the next open after a gold CAM-PB bar when CCI is positive. It also buys the next open after a blue CAM-CT bar whose close crosses above a short exponential average. The same sketch exits a long on the next open after a red CAM-DN bar whose close is below that short exponential average.

Use the filter where a trend is already judged to exist

The notes warn that color filters alone may not be sufficient. They suggest applying the combination on names already judged to trend.

A chart approximation, not a live result

A spreadsheet reconstruction is described as approximating the published CAM pattern chart rather than as a verified live-trading result.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
37 of 39 in the Commodity Channel Index track
20188-13 pp.Next on Commodity Channel IndexFour-state slope labels gated by a moving average and a commodity channel indexA four-state slope pairing classifies stacked strength and momentum by whether both rise, both fall, or move in opposite directions, without waiting for a fixed level or a trigger-line cross.
All readings on this track · 39 readings
  1. 1982Three gates on a 1982 pork-belly short
  2. 1982Scale-free Commodity Channel Index construction
  3. 1986Constructing a commodity channel index and a regression price channel
  4. 1987Constructing scaled OHLC matrices for study overlays
  5. 1987Constructing the commodity channel, average directional, and relative strength indexes on a shared cycle scale
  6. 1992Eleven-bar commodity channel index from typical price and mean deviation
  7. 1992Evaluating Commodity Channel Index breakout versus range rules
  8. 1992Evaluating breakout and CCI rules as complete mechanical procedures
  9. 1993Constructing stochastic, RSI and CCI inputs for forecasts
  10. 1993Nested centered channels with a commodity channel index confirmation gate
  11. 1993Listed-option timing as three separable clocks
  12. 1994Constructing an eleven-period commodity channel index
  13. 1994Confirming Elliott wave turns with channels and the commodity channel index
  14. 1995Commodity Channel Index band rules lag zero-line timing
  15. 1995Building the commodity channel index from typical price
  16. 1995Staged reversal rules with commodity channel index and average channels
  17. 1995Commodity channel index construction from typical price to a smoothed zero line
  18. 2001Reader tests for unfinished lookback oscillators
  19. 2002Constructing the commodity channel index from typical price
  20. 2003Breadth-filtered commodity channel index entry and exit rules
  21. 2003Constructing the Commodity Channel Index from typical price and scaled deviation
  22. 2003A shallow, poorly participated advance is an unconfirmed trend
  23. 2003CCI and RSI parameter defaults as scaling conventions
  24. 2003A cost and capital audit of a Commodity Channel Index trade engine
  25. 2003Commodity channel index peak divergence as an exit after twin patterns
  26. 2004Constructing the Commodity Channel Index from typical price
  27. 2004Constructing the Commodity Channel Index from typical price and mean deviation
  28. 2006Building custom indicators from the Commodity Channel Index, a least squares moving average and a rule-based entry
  29. 2012Confirming breakouts and retracements with CCI, ADX, and averages
  30. 2012Stacking oscillator lookbacks into a heatmap mosaic
  31. 2013Constructing a consensus and volatility-normalized value oscillator
  32. 2013Walk-forward system evaluation with a commodity channel index and chandelier exits
  33. 2014Dual detrended oscillators and dual Bollinger Band channels
  34. 2014RSI, CCI, and moving-average trend-filter construction
  35. 2014Dual RSI, a moving average, and CCI as a confirmation stack
  36. 2017Constructing dual-average cross and channel-index filters
  37. 2018Treat CAM as a classification layer before confirmation becomes an entry
  38. 2018Four-state slope labels gated by a moving average and a commodity channel index
  39. 2018Deviation-Scaled Moving Average construction from a two-bar difference
By fieldIndicators and filters682 readingsBy year201898 readings
All 40 readings tagged Commodity Channel Index
Also on Commodity Channel Index5 readings
1987Constructing the commodity channel, average directional, and relative strength indexes on a shared cycle scale2012Confirming breakouts and retracements with CCI, ADX, and averages1982Three gates on a 1982 pork-belly short1982Scale-free Commodity Channel Index construction1986Constructing a commodity channel index and a regression price channel