Commodity Channel Index (CCI)

Commodity Channel Index (CCI)

CCI has been developed by Donald Lambert; it designed to detect beginning and ending market trends & provides an indication of overbought or oversold markets. The CCI indicates the increasing in the prices compared to average prices as it moves towards +100. As the CCI drops towards -100, it indicates that the price is increasingly low compared to average prices. It provides a warning of overbought and oversold markets when the line crosses the +100 or the -100 levels. The actual buy or sell signal is usually provided, however, when the line then crosses back over the +100 or -100 level. Buy signals are generated when CCI dropped below -100 & then come back up through this level. Sell signals are generated when CCI dropped below +100 or make strong thrust above +100 & then dropped back up through this level. Zero line crossings it confirms buy or sell signals.

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