CCI Forex Trading Divergence Indicator
CCI technical indicator is one of the oftenly used divergence indicator. This indicator is an oscillator similar to the RSI & it can be used to trade divergence setups just the same way as the RSI indicator.
Commodity Channel Index (CCI) Technical Analysis and CCI Signals
The Commodity Channel Index measures the variation of a commodity price from its statistical mean/statistical average.
CCI technical indicator is an oscillator which oscillates between high levels & low levels
When the CCI is high it shows that price is unusually high compared to the its average.
When the CCI is low it shows that price is unusually low compared to the its average.
CCI FX Trading Divergence Indicator
CCI FX Trading Divergence Indicator
CCI Bullish Divergence Setups - CCI Divergence Indicator
Classic CCI Bullish FX Trading Divergence
CCI classic bullish divergence occurs when price is making lower lows (LL), but the CCI technical trading indicator is making higher lows ( HL ).
Classic Bullish Divergence - CCI Divergence Indicator
CCI classic bullish divergence warns of a possible change in the forex trend from down to up. This is because even though the price went lower the volume of sellers that pushed the price lower was less as illustrated by the CCI indicator. This is an technical indicator of the underlying weakness of the downwards trend.
Hidden CCI Bullish Forex Trading Divergence
Forms when price is making a higher low (HL), but the CCI technical trading indicator is showing a lower low ( LL ).
CCI hidden bullish divergence occurs when there is a retracement in an uptrend.
Hidden Bullish FX Trading Divergence
This setup confirms that a retracement move is complete. This CCI divergence setup indicates underlying strength of an uptrend.
Bearish Divergence - CCI Divergence Indicator
Hidden CCI Bearish Forex Trading Divergence
Forms when price is making a lower high (LH), but the oscillator technical trading indicator is showing a higher high ( HH ).
Hidden bearish divergence occurs when there is a retracement in a downtrend.
Hidden Bearish Divergence - CCI Divergence Indicator
This setup confirms that a retracement move is complete. This divergence indicates underlying strength of a downtrend.
CCI Classic bearish FX Trading Divergence
CCI classic bearish divergence occurs when price is making a higher high (HH), but the CCI technical trading indicator is making a lower high ( LH ).
Classic Bearish Divergence - CCI Divergence Indicator
CCI Classic bearish divergence warns of a possible change in the forex trend from up to down. This is because even though the price went higher the volume of buyers that pushed the price higher was less as illustrated by the CCI indicator. This is an technical indicator of the underlying weakness of the upwards trend.
