CCI Divergence Technical Indicator Gold Trading
CCI indicator is one of the commonly used divergence indicator. This indicator is an oscillator similar to the RSI & it can be used to trade divergence setups just the same way as the RSI.
CCI Technical Analysis & CCI Signals
The Commodity Channel Index measures the variation of a commodity price from its statistical mean ( statistical average ).
CCI technical indicator is an oscillator which oscillates between high areas and low levels
When the Commodity Channel Index is high it highlights that price is unusually high when it is compared to its average.
When the CCI is low it highlights that price is unusually low when it is compared to its average.
CCI Divergence Technical Indicator Trading
CCI Divergence Technical Indicator Gold Trading
CCI Divergence Indicator XAUUSD
Classic CCI Bullish Divergence
CCI classic bullish divergence setup occurs when the price is forming lower lows ( LL ), but the CCI indicator is forming higher lows (HL).
XAUUSD Classic Bullish Divergence - CCI Divergence Technical Indicator Trading
CCI classic bullish divergence warns of possible shift in the trend from downwards to upward. This is because though the price moved lower the volume of sellers that moved the price lower was less as shown by CCI indicator. This demonstrates underlying weakness of the down-wards trading trend.
Hidden CCI Bullish Gold Divergence
Forms when price is forming a higher low ( HL ), but the Commodity Channel Index indicator is making a lower low (LL).
CCI hidden bullish divergence setup occurs when there a retracement in an upwards trend.
XAUUSD Hidden Bullish Divergence - CCI Divergence Technical Indicator Trading
This set-up confirms that a price retracement move is exhausted. This CCI divergence setup shows underlying strength of an up-wards trend.
CCI Divergence Indicator XAUUSD
Hidden CCI Bearish Divergence
Occurs when the price is forming lower high ( LH ), but the indicator is showing higher high (HH).
Hidden bearish divergence setup forms when there a retracement in a down-wards trend.
XAUUSD Hidden Bearish Divergence - CCI Divergence Technical Indicator Trading
This set-up confirms that a price retracement move is exhausted. This divergence indicates strength of a downwards trend.
CCI Classic bearish Gold Divergence
CCI classic bearish divergence setup occurs when price is showing a higher high ( HH ), but the CCI indicator is making a lower high (LH).
XAUUSD Classic Bearish Divergence - CCI Divergence Technical Indicator Trading
CCI classic bearish divergence warns of possible shift in the market trend from upward to downward. This is because though the price moved higher the volume of buyers that moved price higher was less as shown by the CCI technical indicator. This demonstrates underlying weakness of the up-wards trend.
