Uber Dank CCI + Captain Beefheart Bollinger Bands Extraordinaire

The Uber Dank CCI + Captain Beefheart Bollinger Bands Extraordinaire indicator combines the Commodity Channel Index (CCI) with price-based and indicator-based Bollinger Bands to provide a comprehensive view of momentum and volatility exhaustion.

Usage

The tool integrates multiple technical layers into a single oscillator pane. Traders can use it to identify overextended price action and potential trend reversals through the following features:

• Dual Bollinger Band Logic: The script tracks price relative to Bollinger Bands on the chart, while simultaneously applying a second set of Bollinger Bands directly to the CCI oscillator.
• Color-Coded Momentum: The CCI line changes color based on the price's position relative to its chart-based Bollinger Bands. For example, a red CCI indicates price is above the upper band, while a green CCI indicates it is below the lower band.
• Volatility Backgrounds: The oscillator background highlights the CCI's position relative to its own internal Bollinger Bands, using the same color logic as the line itself.
• Exhaustion Signals: Exclamation marks (!) appear when extreme conditions (both price and CCI outside their respective bands) begin to revert. These signals suggest that a period of high volatility or a strong trend move may be coming to an end.
• Divergence Detection: The script automatically identifies and labels regular and hidden bullish/bearish divergences between the price and the CCI oscillator.

Details

The indicator functions by calculating a standard CCI and applying a set of Bollinger Bands (Basis, Upper, and Lower) to that result. It also monitors the relationship between the current closing price and standard price-based Bollinger Bands.

The "!" exhaustion markers use lookback logic. They check if either of the last two bars saw both the price and the CCI beyond their respective bands, and then trigger when the current bar shows at least one of those conditions has normalized. This "re-entry" logic is why the symbols often appear in pairs during sharp reversals.

Settings

CCI

• length: Determines the lookback period for the CCI calculation.
• CCI Source: The price source used for the CCI (default is HLC3).
• StdDev: The multiplier for the Bollinger Band standard deviations.
• Offset: Shifts the Bollinger Band plots on the oscillator.

BB

• Length: The period used for the Bollinger Bands calculated on the CCI.
• Normalize BBR To: Adjusts the scale for the Bollinger Band %B (BBR) histogram option.

Divergence

• Lookback Range (Max/Min): Defines the distance between pivots to be considered for divergence.
• Plot Options: Toggle visibility for Regular Bullish, Hidden Bullish, Regular Bearish, and Hidden Bearish signals.
• Pivot Lookback Right/Left: Adjusts the sensitivity of the pivot point detection used for divergence.

Histogram

• Histogram Options: Choose between displaying an SMA-based histogram, Band Strength, or BB%R (Bollinger Band %R).

FAQ

How do I interpret the exclamation marks?

The exclamation marks indicate that a period of extreme volatility (where both price and the CCI were outside their bands) is ending. They serve as early warnings for potential mean reversion.

What is the difference between the CCI color and the background color?

The CCI line color reflects the relationship between the closing price and price Bollinger Bands. The background color reflects the relationship between the CCI value and the oscillator's Bollinger Bands.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.