CCI CFDs Technical Analysis & CCI CFD Signals

Developed by Donald Lambert

The Commodity Channel Index measures the variation of a commodity cfd price from its statistical mean/statistical average.

This cfds technical indicator is an oscillator which oscillates between high levels and low levels

When the CCI is high it shows that cfd price is unusually high when compared to the average.

When the CCI is low it shows that cfd price is unusually low as compared to the average.

CFDs Technical Analysis and Generating CFD Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

Indicator values above +100 indicate an overbought conditions & an impending market correction.

Indicator values below -100 indicate an oversold conditions & an impending market correction

Buy CFDs Signal

If the Commodity Channel Index indicator is over-sold, areas below -100, then there's a pending market correction.

Over-sold levels will remain intact until Commodity Channel Index technical indicator starts to move above -100.

When cfd price starts moving above -100 then that is interpreted as a buy.

The Commodity Channel buy signal should be combined with a cfd trendline break signal to confirm the buy.

Buy Trade

Sell CFD Signal

If the Commodity Channel Index is over bought, zones above +100, then there is a pending market correction.

Overbought areas will remain intact until CCI indicator starts to move below +100.

When cfd price starts moving below +100 then that's a interpreted as sell.

This Commodity Channel sell signal should be combined with a cfd trendline break signal to confirm the sell.

Sell Trade

Divergence CFDs

Bullish CFD Trading Divergence Setup

Bullish divergence forms when price is making new lows while the CCI technical indicator is failing to surpass its previous low.

This is a bullish signal because the divergence will be followed by an upward market correction.

Bearish CFDs Trading Divergence Setup

Bearish Divergence forms when price is making new highs while the CCI indicator is failing to surpass its previous high.

This is a bearish signal because the divergence will be followed by a downwards market correction.

Technical Analysis in CFD Trading