Sunday, 30 June 2019

Get to know the CCI Indicato

The Commodity Channel Index (CCI) was made by Donald Lambert in 1980 as a tool in commodity trading. But in reality, this indicator can also be used for trading in all types of markets including forex. Lambert made the CCI to measure the difference between the middle price, price movement, and the average of the middle price in a certain time period.

What is the CCI Indicator?
CCI is one of the leading indicators on Metatrader. CCI is classified as one group with Oscillator type along with RSI, MACD, etc.

The CCI reading is actually very simple: if the CCI signal is above 100, the price is uptrend. Conversely, if the CCI signal line is below the value of -100, then the price is downtrend. If described in a simple manner, then when the CCI signal line is directed upwards, then the market is in a bullish state. Conversely when the CCI signal line is directed downwards, it means the market is in a bearish state. But at present, CCI is actually used more often to see the level of market saturation.

This CCI indicator chart consists of 3 components, namely:

  • CCI signal line
  • Overbought area
  • Oversold area

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