CCI Commodity Analysis & CCI Trading Signals

Developed by Donald Lambert

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

This commodity technical indicator is an oscillator which oscillates between high levels & low levels

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

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

Commodity Trading Channel Index Indicator

Commodity Analysis & Generating Trading Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

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

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

Buy Trading Signal

If the Commodity Trading Channel Index is oversold, levels below -100, then there is a pending market correction.

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

When commodity price starts moving above -100 then that's interpreted as a buy.

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

CCI Commodities Indicator Technical Analysis - Is CCI Commodity Indicator Leading or Lagging Indicator

Buy Trade

Sell Trading Signal

If the Commodity Trading Channel Index is overbought, levels above +100, then there is a pending market correction.

Overbought areas will remain intact until Commodities Channel Index trading indicator starts to move below +100.

When commodity price starts moving below +100 then that is a interpreted as sell.

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

Example of How to Generate Trading Signals with This How to Analyze Commodity Signal Trading Strategy

Sell Trade

Divergence Commodity Trading

Bullish Commodities Trading Divergence Setup

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

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

Bullish Divergence Commodity Technical Analysis - How Do I Trade Commodity Divergence Signals?

Bearish Commodity Trading Divergence Setup

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

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

Bearish Divergence Commodity Signal - How Can Commodity Trader Generate Divergence Commodity Buy & Sell Trade Signal?

Technical Analysis in Commodities Trading

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