CCI Commodity Trading Divergence Technical Indicator Commodities Trading

CCI technical indicator is one of the oftenly used divergence indicator. This commodity technical indicator is an oscillator similar to the RSI & it can be used to trade divergence set ups just the same way as the RSI indicator.

CCI Commodity Trading Technical Analysis & CCI Trading Signals

The Commodity Trading Channel Index measures the variation of a commodities price from its statistical mean(statistical average).

CCI technical indicator is an oscillator which oscillates between high areas & low levels

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

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

CCI Commodity Trading Divergence Technical Indicator Commodity Trading

CCI Commodities Trading Divergence Technical Indicator Commodities Trading

CCI Divergence Technical Indicator Commodities Trading

Classic CCI Bullish Commodity Trading Divergence

CCI classic bullish divergence occurs when price is making lower lows ( LL ), but the CCI indicator is making higher lows (HL).

Commodity Trading Classic Bullish Divergence - Commodities Channel Index Divergence Technical Indicator Trading

CCI classic bullish divergence warns of a possible change in the commodity trend from down to up. This is because even though the commodity price went lower the volume of sellers who pushed the commodities price lower was less as illustrated by the CCI indicator. This is an technical indicator of the underlying weakness of the downwards trend.

Hidden CCI Bullish Commodities Trading Divergence

Forms when price is making a higher low ( HL ), but the CCI indicator is showing a lower low (LL).

CCI hidden bullish divergence occurs when there is a retracement in an upwards commodities trend.

Commodity Hidden Bullish Divergence - Commodities Channel Index Divergence Technical Indicator Trading

This set-up confirms that a retracement move is complete. This CCI divergence setup indicates underlying strength of an upward commodities trend.

CCI Divergence Trading Indicator Commodities Trading

Hidden CCI Bearish Commodity Trading Divergence

Forms when price is making a lower high ( LH ), but the oscillator indicator is showing a higher high (HH).

Hidden bearish divergence forms when there is a retracement in a downwards trend.

Commodity Hidden Bearish Divergence - Commodities Channel Index Divergence Technical Indicator Trading

This set-up confirms that a retracement move is complete. This divergence indicates underlying strength of a downward commodities trend.

CCI Classic bearish Commodities Trading Divergence

CCI classic bearish divergence occurs when price is forming a higher high (HH), but the CCI indicator is lower high (LH).

Commodity Classic Bearish Divergence - Commodities Channel Index Divergence Technical Indicator Trading

CCI Classic bearish divergence warns of a possible change in the commodity trend from up to down. This is because even though the commodity price went higher the volume of buyers who pushed the commodities price higher was less as illustrated by the CCI technical indicator. This is an technical indicator of the underlying weakness of the upwards trend.