CCI Stocks Technical Analysis and CCI Stocks Signals
Developed by Donald Lambert
The CCI measures the variation of a commodity stocks trading 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 trading price is unusually high compared to the its average.
When the CCI is low it shows that stocks trading 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 and an impending market correction.
Indicator values below -100 indicate an oversold conditions and an impending market correction
Buy Stock Signal
If the CCI is oversold, levels below -100, then there is a pending market correction.
The oversold levels will remain intact until CCI starts to move above -100.
When stocks price starts moving above -100 then that is interpreted as a buy.
The Commodity Channel buy signal should be combined with a stocks trend line break signal to confirm the buy.
Buy Trade
Sell Stocks Signal
If the CCI is overbought, levels above +100, then there is a pending market correction.
The overbought levels will remain intact until CCI starts to move below +100.
When stocks price starts moving below +100 then that is a interpreted as sell.
This Commodity Channel sell 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 occurs when price is making new lows while the CCI 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 CCI is failing to surpass its previous high.
This is a bearish signal because the divergence will be followed by a downward market correction.
Technical Analysis in Stocks Trading
