What are the key CCI levels?

The most important levels are +100 and -100. Readings above +100 indicate a strong uptrend, while below -100 indicate a strong downtrend.

How is CCI different from RSI?

RSI is bounded (0-100), while CCI is unbounded, meaning it can reach much higher or lower extremes during intense market moves.

Is CCI only for commodities?

No, despite its name, it is highly effective for forex, stocks, and indices.

How do you spot CCI divergence?

If price makes a new high but CCI makes a lower high, it suggests momentum is fading and a reversal might be near.

Education · Indicators

CCI: Spotting cyclical market turns.

The Commodity Channel Index (CCI) measures the current price level relative to an average price level over a given period of time.

Trend identification.

CCI was originally designed to identify long-term trend changes. When the CCI moves from below zero to above +100, it signals a new bullish trend.

Conversely, a move from above zero to below -100 signals a new bearish trend.

Overbought vs. Oversold.

Above +100: Market is overextended to the upside, but often signifies the start of a strong trend.
Below -100: Market is overextended to the downside.
Extreme readings (+200/-200) often precede a sharp correction.
Traders often look for the indicator to cross back inside the 100 levels as a signal to take profit.

Divergence signals.

Like all oscillators, CCI divergence is a powerful 'heads-up' for a trend reversal. If price is pushing higher but the CCI is dropping, the trend lacks conviction.

FAQ

Perguntas frequentes.

Trade market cycles with 0,000.

Start for . Pay 50 only after passing. 10% target, 3% daily / 8% max drawdown, no time limit, and weekly USDT rewards.

Relacionados

Continue lendo.

Compare oscillators.

Speed of price.

Catching cycles.

Get funded.