CCI Commodities Technical Analysis & CCI Trading Signals

Developed by Donald Lambert

The CCI measures the variation of a commodities price from its statistical mean(statistical average).

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

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

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

Commodities Technical Analysis & Generating Trading 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 Trading Signal

If the CCI technical indicator is oversold, areas below -100, then there's a pending market correction.

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

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

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

Buy Trade

Sell Trading Signal

If the CCI is over bought, levels above +100, then there is a pending market correction.

Over bought levels will remain intact until Commodities Channel Index trading indicator starts to move below +100.

When commodities price starts moving below +100 then that is a interpreted as sell.

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

Sell Trade

Divergence Commodities

Bullish Commodity Trading Divergence Setup

Bullish divergence occurs when commodities 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 upwards market correction.

Bearish Commodities Trading Divergence Setup

Bearish Divergence occurs when commodities 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 downwards market correction.

Technical Analysis in Commodity Trading