How do I calculate the chart pattern indicator (CPI)?
My answer is this: Why would you want to? I update the website daily with the reading and also provide a chart of the indicator each Friday. Plus, Patternz will calculate it for you at the touch of a button. If you want to use the indicator as a trading vehicle, you’re making a mistake. If you don’t understand why, or want to try building it anyway, then consult the following resources, arranged in order of importance. • This is the main indicator construction page along with warnings about trading it. • Here is the current list of symbols used in construction of the indicator. • NR7 chart pattern. Understanding this will help. • Download the Patternz program. You don’t need to install it, just read the manual on the CPI section. • CPI update page, has pictures of the indicator. Others that have tried to replicate the indicator have had success, but it’s not an easy gig (nor terribly hard). Most trip over the “backfilling” of counts between the NR7’s end and the breakout. Pay special a
