At this time, purchasing EASY Bot items is not available to all members. Read more - how to get access to purchase

Commodity Channel Index

Find the Right Edition That Fits You
Scalperology Ai MT5
Global
Pairs: AUD/JPY
AUD/JPY
AUD/USD
EUR/AUD
EUR/GBP
EUR/JPY
EUR/NZD
EUR/USD
GBP/USD
NZD/USD
USD/CAD
USD/CHF
USD/JPY
XAU/USD
XAG/USD
XBT/USD
30-Day Profit: 39.56%
7-Day Profit: 26.01%
Support: 24х7 via Telegram
Free 🎁
Breakopedia Ai MT5
Global
Pairs: AUD/JPY
AUD/JPY
AUD/USD
EUR/AUD
EUR/GBP
EUR/JPY
EUR/NZD
EUR/USD
GBP/USD
NZD/USD
USD/CAD
USD/CHF
USD/JPY
XAU/USD
XAG/USD
XBT/USD
30-Day Profit: 26.91%
7-Day Profit: 16.4%
Support: Developer
Free EA🚀

What is the Commodity Channel Index?

  • The Commodity Channel Index (CCI) is a momentum-based oscillator developed by Donald Lambert in the 1980s.
  • It measures the difference between the current price and the average price over a specified period.
  • CCI helps traders identify overbought and oversold conditions in a market, aiding in trend direction analysis. 📈

    • How is the CCI Calculated?

  • Determine the typical price using the formula: (High + Low + Close) / 3.
  • Calculate the simple moving average (SMA) of the typical price over a specified period, often 14 days.
  • Calculate the mean deviation of the typical price from the SMA.
  • The CCI is then computed as: CCI = (Typical Price - SMA) / (0.015 x Mean Deviation). The constant 0.015 ensures that around 70% to 80% of CCI values fall between +100 and -100.

    • Understanding CCI Values

  • CCI values above +100 indicate that the market may be overbought, suggesting a possible downward correction.
  • CCI values below -100 indicate oversold conditions, signaling a potential upward price movement.
  • Traders often look for divergences between CCI and price action as additional signals to confirm buy or sell opportunities. 🎉

    • Uses of CCI in Trading Strategies

  • Traders can use CCI to identify entry and exit points for trades based on overbought and oversold signals.
  • It is often combined with other indicators, such as Moving Averages or momentum indicators, to increase the reliability of signals.
  • Adaptive versions of CCI can enhance performance by adjusting the calculation period based on market conditions.

    • Limitations of the CCI

  • Like all technical indicators, CCI can produce false signals, especially in volatile markets or during sideways price action.
  • Traders should avoid relying solely on CCI to make trading decisions; it works best when used in conjunction with other forms of analysis.
  • Setting the period too short may lead to excessive noise, while too long a period may delay signals. ⚠️

    • Ah, the Forex market—a mysterious realm where fortunes can be made or lost faster than you can say 'bad trade.' Among the many shiny tools trying to snag your attention, we have the CCI Multi Dashboard MT5, lurking in the background like a cunning fox. But does it truly possess ...

    Release Date: 21/02/2023

    Ever wondered if a magic trading robot actually exists? Well, welcome to the circus! The Only CCI Robot swings into town, promising profits by solely relying on the Commodity Channel Index. Is it the golden ticket we’ve all been waiting for, or just another hocus pocus to lure ...

    Release Date: 29/12/2023

    Delve into the world of the 'CCI Alerts with Arrows' trading system, an intriguing yet controversial product designed to bring precision to traders' decision-making. With its modified CCI indicator promising alerts and actionable signals, one must ponder—does it truly deliver o ...

    Release Date: 21/08/2018

    Sign in \ Up
    Sign in \ Up

    Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.