What's CCI Indicator? - Definition of CCI Indicator
CCI indicator - CCI indicators is a popular technical indicator which can be found on the - Indicators List on this website. CCI indicator is used by traders to forecast price movement based on the chart price analysis done using this CCI indicator. Traders can use the CCI buy and Sell Signals explained below to determine when to open a buy or sell trade when using this CCI indicator. By using CCI and other indicators combinations traders can learn how to make decisions about market entry & market exit.
What's CCI Indicator? CCI Indicator
How Do You Combine Indicators with CCI? - Adding CCI Indicator in MT4
Which Indicator is the Best to Combine with CCI?
Which is the best CCI indicator combination for trading?
Most popular indicators combined with CCI are:
- Relative Strength Index
- MAs Indicator
- MACD
- Bollinger ##BandsBand
- Stochastic Indicator
- Ichimoku Kinko Hyo Indicator
- Parabolic SAR
Which is the best CCI indicator combination for trading? - CCI MT4 indicators
What Indicators to Combine with CCI?
Get additional indicators in addition to CCI indicator which will determine the trend of the market as well as others that confirm the market trend. By combining indicators that determine trend and others that confirm the trend & combining these indicators with Forex CCI indicator a trader will come up with a CCI based system that they can test using a practice demo account on the MT4 software.
This CCI based system will also help traders to determine when there is a market reversal based on the indicators signals generated and therefore trades can know when to exit the market if they have open trade transactions.
What is CCI Indicator Based Trading? Indicator based system to analyze price and provide trade signals.
What's the Best CCI Strategy?
How to Select the Best CCI Strategy
For traders researching on What is the best CCI strategy - the following learn forex tutorials will help traders on the steps required to guide them with coming up with the best strategy for market based on the CCI indicator system.
How to Create CCI Trading Systems - Best Indicators Combination for CCI
- What is CCI Indicator Strategy
- Creating CCI Strategy Template
- Writing CCI Strategy Rules
- Generating CCI Buy and CCI Sell Signals
- Creating CCI Indicator System Tips
About CCI Indicator Explained
Commodity Channel Index, CCI Analysis and Commodity Channel Index Signals
Developed by Donald Lambert
The Commodity Channel Index measures the variation of a commodity price from its statistical mean/statistical average.
This indicator is an oscillator which oscillates between high levels & low levels
When the Commodity Channel Index is high it highlights that price is unusually high compared to the its average.
When the CCI is low it highlights that price is unusually low compared to the its average.
Technical Analysis and Generating 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 and an impending market correction
Buy Signal
If the Commodity Channel Index indicator is oversold, areas below -100, then there a pending market correction.
Oversold levels will remain intact until Commodity Channel Index indicator starts to move above -100.
When price starts moving above -100 then that is interpreted as a buy.
The Commodity Channel buy signal should be combined with a trend line break signal to confirm the buy.
Buy Trade
Sell Signal
If the Commodity Channel Index is over bought, zones above +100, then there a pending market correction.
Overbought areas will remain intact until CCI indicator starts to move below +100.
When price starts moving below +100 then that is a interpreted as sell.
This Commodity Channel sell signal should be combined with a trend-line break signal to confirm the sell.
Sell Trade
Divergence Trading
Bullish Trading Divergence
Bullish divergence setup forms when the price is making new lows while the Commodity Channel Index 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 Divergence Trading 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.
Analysis in FX Trading
