Commodity Channel Index-CCI Indicator - Forex Market Analysis

Commodity Channel Index-CCI Indicator

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Commodity Channel Index-CCI Indicator

Fortieth session of Forex Training

Welcome back to Forex professional training in financial markets.

In this session Commodity Channel Index-CCI indicator, Buy and Sell Extreme Conditions will be studied.

CCI or Commodity Channel Index

CCI, Commodity Channel Index, was first used on Commodity markets that have volatile movements and trends.

Nowadays, traders exploit this oscillator on all financial markets, especially on volatile symbols, to detect extreme regions.

CCI is based on a Momentum Oscillator.

Commodity Channel Index-CCI Indicator - Momentum Oscillator Confirmations - Trading Signals - Technical Analysis

Buy Extreme Condition shows a great tendency to buy which creates a good opportunity for a trader to place a Buy order.

Whenever CCI trend touches level +100, trader can place a Buy order.

Sell Extreme Condition shows a great tendency to sell which creates a good opportunity for a trader to place a Sell order.

Whenever CCI trend touches level -100, trader can place a Sell order.

Examples on USDJPY can be beneficial. Trader can insert from Trend option of Indicator menu.

CCI chart shows numerous sharp movements and trends, unlike RSI.

An example shows that as CCI trend touched level +100, market price has increased considerably.

A long candle confirmed the upward trend, too. CCI trend touched level +100 again, so that trader could place a Buy order.

Commodity Channel Index-CCI Indicator - Overbought and Oversold Levels - Extreme Buy Sell Orders

When CCI trend touched level -100, trend has decreased and a trader could place a Sell order.

Another Sell order could have been placed when CCI trend touched level -100 again.

In this example, there is a Bearish Head and Shoulders with an upward neckline.

Breakout point on the powerful Bearish candle confirmed the downward trend. Trader can use CCI as a confirmation signal.

That concludes this session, until next time and another session take care.

Linkages & Notices

You can also view the video of this session available on the PFOREX Financial Video tutorials.

You can also find the video of this session on PFOREX YouTube Channel.

PFOREX Assist app provides BEST & FREE trading signals and market analysis. PFOREX Assist is available on App Store (iOS version) & Play Store (Android version).

The PDF file of this session is also available.

PFOREX Educational materials in text and video formats are developed by PFOREX Department of Education to enhance and improve investors’ knowledge and trading skills. Due to high risks and volatile fluctuations in financial markets, traders and investors must develop their trading skills and knowledge. It is strongly recommended to apply Risk and Capital Management when trading in financial market.



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