CCI Stocks Technical Analysis & CCI Stocks Signals

Developed by Donald Lambert

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

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

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

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

Stock Technical Analysis and How to Generate 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 Stock Signal

If the CCI indicator is over-sold, areas below -100, then there is a pending market correction.

The over-sold areas will remain intact until Commodity Channel Index indicator starts to move above -100.

When stocks price starts moving above -100 then that's interpreted as a buy.

The Commodity Channel buy trading signal should be combined with a stocks trend-line break signal to confirm the buy.

Buy Trade

Sell Stocks Signal

If the Commodity Channel Index is over bought, levels above +100, then there's a pending market correction.

Over bought levels will remain intact until CCI indicator starts to move below +100.

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

This Commodity Channel sell trading signal should be combined with a stocks trend-line break signal to confirm the sell.

Sell Trade

Divergence Stock

Bullish Stocks 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 signal because the divergence will be followed by an upward market correction.

Bearish Stock Trading Divergence Setup

Bearish Divergence occurs when price is making new highs while the Commodities Channel Index indicator is failing to surpass its previous high.

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

Technical Analysis in Stocks Trading