CCI Oil Analysis & CCI Trading Signals

Developed by Donald Lambert

The Commodity Channel Index measures the variation of a commodity crude oil price from its statistical mean/statistical average.

This technical indicator is an oscillator which oscillates between high levels & low levels

When the CCI is high it shows that oil trading price is unusually high compared to the its average.

When the CCI is low it shows that oil trading price is unusually low when compared to the its average.

CCI Oil Indicator - Place CCI Oil Indicator on Oil Trading Chart

Oil Trading Technical Analysis & Generating Trading Signals

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

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 crude oil price starts moving above -100 then that's interpreted as a buy.

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

CCI Oil Indicator Analysis - CCI Crude Oil Indicator Technical Analysis - CCI Strategy Buy and Sell Oil Signals

Buy Trade

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 crude oil price starts moving below +100 then that is a interpreted as sell.

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

Example of How to Generate Crude Oil Signal with This Oil Trading Signal Guide

Sell Trade

Bullish divergence occurs when crude oil price is making new lows while the CCI is failing to surpass its previous low.

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

Bullish Divergence Oil Trading Technical Analysis - Divergence Trading System

Bearish Divergence occurs when crude oil price is making new highs while the CCI is failing to surpass its previous high.

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

Bearish Divergence Oil Signal - Example of How to Analyze Divergence Technical Analysis Signals with This Oil Strategy

Technical Analysis in Crude Oil Trading