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CCI Stock Indices Technical Analysis and CCI Stock Indices Signals

Developed by Donald Lambert


The Commodity Channel Index measures the variation of a commodity stock index price from its statistical mean/statistical average.


This indices technical indicator is an oscillator which oscillates between high levels and low levels


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


When the CCI is low it shows that stock index price is unusually low compared to the its average.


Commodity Channel Index indicator



Stock Indices Technical Analysis and Generating Stock Indices 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 Stock Indices Signal

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


The oversold levels will remain intact until CCI starts to move above -100.


When stock index price starts moving above -100 then that is interpreted as a buy.


The Commodity Channel buy stock indices signal should be combined with a stock indices trend line break signal to confirm the buy.

CCI Stock Index Technical Indicator Analysis - CCI Stock Index Indicator Technical Analysis

Buy Trade



Sell Stock Indices Signal

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


The overbought levels will remain intact until CCI starts to move below +100.


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


This Commodity Channel sell stock indices signal should be combined with a stock indices trend line break signal to confirm the sell.

Sell Stock Indices Signal

Sell Trade



Divergence Stock Indices


Bullish Divergence

Bullish divergence occurs when stock index price is making new lows while the CCI is failing to surpass its previous low.

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

Bullish Divergence Indices Technical Analysis



Bearish Divergence

Bearish Divergence occurs when stock index price is making new highs while the CCI 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 Signal

Technical Analysis