CCI Trade Divergence Indicator
The Commodity Channel Index (CCI) is frequently used as a divergence indicator. Similar to the RSI, this oscillator can be employed to trade divergence in the same manner as the RSI does.
Commodity Channel Index, CCI Analysis & CCI Signals
The CCI functions to quantify the degree to which a commodity's price deviates from its established statistical mean or average.
CCI Oscillator Moves Between High and Low Bounds
When the CCI is elevated, it indicates that the price is considerably high in comparison to the average.
When the CCI registers a low value, it indicates that the current price observation is significantly lower relative to the calculated average.
CCI FX Divergence Indicator
CCI FX Divergence Indicator
CCI Bullish Divergence Setups - CCI Divergence Indicator
Classic CCI Bullish Divergence
A classic CCI bullish divergence happens when the price makes new lower lows (LL), but the CCI makes new higher lows ( HL ).
Classic Bullish Divergence - CCI Divergence Indicator
The classic CCI bullish divergence indicates a possible change in the trend from going down to going up. This is because, even though the price went lower, there were fewer sellers pushing the price down, as shown by the CCI indicator. This indicates an underlying weakness in the downward trend.
Hidden CCI Bullish Trade Divergence
This setup occurs when the price action is establishing a higher low (HL), yet the CCI trading indicator is simultaneously displaying a lower low (LL).
CCI hidden bullish divergence occurs when there's a retracement in an uptrend.
Hidden Bullish Divergence
This setup confirms the completion of a price retracement, with CCI divergence reflecting the underlying strength of an uptrend.
Bearish Divergence - CCI Divergence Indicator
Hidden CCI Bearish Trade Divergence
This happens when the price is making a lower high (LH), but the oscillator technical indicator is making a higher high (HH).
Hidden bearish divergence occurs when there is a retracement in a downtrend.
Hidden Bearish Divergence - CCI Divergence Indicator
This configuration validates the completion of a price retracement movement. This specific divergence reflects the inherent strength of a downward market trend.
CCI Classic bearish FX Divergence
CCI classic bearish divergence happens when the price makes a higher high (HH), but the CCI makes a lower high (LH).
Classic Bearish Divergence - CCI Divergence Indicator
CCI classic bearish divergence warns of possible shift in the trend from upward to downwards. This is because even though price moved higher the volume of the buyers(bulls) who moved the price higher was less like illustrated by CCI indicator. This is an indicator of the underlying weakness of the upwards trend.
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