CCI Crude Oil Trading Divergence Oil Indicator Oil Trading

CCI technical indicator is one of the commonly used divergence indicator. This technical indicator is an oscillator similar to the RSI & it can be used to trade divergence setups just the same way as the RSI indicator.

CCI Crude Oil Analysis & CCI Trading Signals

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

CCI technical indicator is an oscillator which oscillates between high areas & low levels

When the CCI is high it shows that oil price is unusually high when compared to the average.

When the CCI is low it shows that oil price is unusually low as compared to the average.

CCI Crude Oil Trading Divergence Oil Indicator Crude Oil Trading

CCI Oil Trading Divergence Crude Oil Indicator Oil Trading

CCI Bullish Crude Oil Trading Divergence Setups

Classic CCI Bullish Oil Trading Divergence

CCI classic bullish divergence occurs when crude oil price is making lower lows ( LL ), but the CCI technical trading indicator is making higher lows ( HL ).

Oil Classic Bullish Divergence - CCI Divergence Technical Indicator Trading

CCI classic bullish divergence warns of a possible change in the oil trend from down to up. This is because even though the crude oil price went lower the volume of sellers who pushed the oil price lower was less as illustrated by the CCI indicator. This is an technical indicator of the underlying weakness of the downward trend.

Hidden CCI Bullish Crude Oil Trading Divergence

Forms when crude oil price is making a higher low ( HL ), but the CCI technical trading indicator is showing a lower low ( LL ).

CCI hidden bullish divergence occurs when there is a retracement in an upwards oil trend.

Oil Trading Hidden Bullish Divergence - CCI Divergence Technical Indicator Trading

This set-up confirms that a retracement move is complete. This CCI divergence setup indicates underlying strength of an upward oil trend.

Bearish Oil Trading Divergence Setup

Hidden CCI Bearish Crude Oil Trading Divergence

Forms when crude oil price is making a lower high ( LH ), but the oscillator technical indicator is showing a higher high ( HH ).

Hidden bearish divergence forms when there's a retracement in a downward oil trend.

Oil Hidden Bearish Divergence - CCI Divergence Technical Indicator Trading

This set-up confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards oil trend.

CCI Classic bearish Oil Trading Divergence

CCI classic bearish divergence occurs when crude oil price is making a higher high ( HH ), but the CCI technical trading indicator is making a lower high ( LH ).

Oil Trading Classic Bearish Divergence - CCI Divergence Technical Indicator Trading

CCI Classic bearish divergence warns of a possible change in the oil trend from up to down. This is because even though the crude oil price went higher the volume of buyers who pushed the crude oil price higher was less as illustrated and shown by the CCI indicator. This is an technical indicator of the underlying weakness of the upwards trend.