### CCI Histogram with Color Gradients
A custom Commodity Channel Index (CCI) indicator that transforms the traditional line-based CCI into an easy-to-read histogram with color gradients. This visualization enhancement helps traders quickly identify overbought and oversold conditions through intuitive color coding.
#### Key Features
• **Enhanced Visualization**: Displays CCI as color-coded histogram bars instead of traditional lines
• **Adaptive Color Scheme**: Uses optimized colors for better visibility on light backgrounds
• **Customizable Parameters**: Easily adjust period length, source, and histogram width
• **Reference Lines**: Clear dotted lines at key levels for quick reference
#### Color Interpretation
• **Deep Forest Green** (≥ +200): Strong overbought condition
• **Medium Green** (≥ +100): Moderate overbought condition
• **Dark Slate Gray** (-100 to +100): Neutral zone
• **Indian Red** (≤ -100): Moderate oversold condition
• **Dark Red** (≤ -200): Strong oversold condition
#### Customizable Inputs
• **CCI Length**: Default 20 periods (adjustable)
• **Source**: Default close price (adjustable)
• **Multiplier**: Default 0.015 (standard CCI constant)
• **Histogram Width**: Default 4 (adjustable 1-10)
#### Trading Usage
1. **Overbought/Oversold Signals**:
- Strong signals above +200 or below -200
- Moderate signals between +100 to +200 and -100 to -200
2. **Trend Confirmation**:
- Green histograms indicate bullish momentum
- Red histograms indicate bearish momentum
- Gray indicates consolidation or neutral trend
3. **Divergence Analysis**:
- Compare histogram peaks/troughs with price action
- Look for potential reversals when divergences occur
#### Notes
• Optimized for light theme backgrounds (#d7d6d0)
• Includes value labels for precise readings
• Reference lines help identify key levels
• Dotted reference lines ensure histogram visibility
#### Best Practices
• Use in conjunction with other indicators for confirmation
• Monitor histogram color changes for potential trend shifts
• Pay attention to extreme readings (beyond ±200)
• Watch for histogram height and color intensity changes
#### Updates
Version 1.0
- Initial release with basic color coding
Version 1.1
- Added customizable histogram width
- Optimized colors for light backgrounds
- Added value labels
#### Author's Note
This indicator is designed to make CCI analysis more intuitive through visual enhancement while maintaining the reliability of the traditional CCI calculation method.