CCI XAUUSD Technical Analysis & CCI Gold Signals

Developed by Donald Lambert

The Commodity Channel Index measures the variation of a commodity gold price from its statistical mean(statistical average).

This xauusd indicator is an oscillator which oscillates between high levels and low levels

When the CCI is high it shows that gold price is unusually high when compared to its average.

When the CCI is low it shows that gold price is unusually low compared to its average.

XAUUSD Technical Analysis and Generating Gold Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

Indicator values above +100 indicate an overbought conditions & an impending market correction.

Indicator values below -100 indicate an oversold conditions & an impending market correction

Buy XAUUSD Signal

If the Commodities Channel Index indicator is over-sold, levels below -100, then there is a pending market correction.

Over-sold levels will remain intact until Commodity Channel Index technical indicator starts to move above -100.

When gold price starts moving above -100 then that is interpreted as a buy.

The Commodity Channel buy signal should be combined with a xauusd trendline break signal to confirm the buy.

Buy Trade

Sell Gold Signal

If the Commodity Channel Index is overbought, areas above +100, then there's a pending market correction.

Overbought areas will remain intact until CCI indicator starts to move below +100.

When gold price starts moving below +100 then that's a interpreted as sell.

This Commodity Channel sell signal should be combined with a xauusd trendline break signal to confirm the sell.

Sell Trade

Divergence XAUUSD

Bullish XAUUSD Trading Divergence Setup

Bullish divergence forms when price is making new lows while the CCI technical indicator is failing to surpass its previous low.

This is a bullish trading signal because the divergence will be followed by an upward market correction.

Bearish Gold Trading Divergence Setup

Bearish Divergence forms when price is making new highs while the CCI indicator is failing to surpass its previous high.

This is a bearish trading signal because the divergence will be followed by a downwards market correction.

Technical Analysis in XAUUSD Trading