CCI Energies Technical Analysis & CCI Trading Signals

Developed by Donald Lambert

The CCI measures the variation of a energy price from its statistical mean/statistical average.

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

When the CCI is high it shows that energy trading price is unusually high when compared to the average.

When the CCI is low it shows that energy price is unusually low as compared to the average.

Energies Technical Analysis and Generating Trading 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 Trading Signal

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

Oversold areas will remain intact until Commodity Channel Index technical indicator starts to move above -100.

When energies price starts moving above -100 then that is interpreted as a buy.

The Energies Channel buy signal should be combined with a energies trendline break signal to confirm the buy.

Buy Trade

Sell Trading Signal

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

The over bought areas will remain intact until CCI indicator starts to move below +100.

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

This Energies Channel sell signal should be combined with a energies trendline break signal to confirm the sell.

Sell Trade

Divergence Energies

Bullish Energy Trading Divergence Setup

Bullish divergence occurs when the 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 Energies Trading Divergence Setup

Bearish Divergence forms when the 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 downward market correction.

Technical Analysis in Energy Trading