CCI FX Trading Divergence Indicator

CCI technical indicator is one of the oftenly used divergence indicator. This indicator is an oscillator similar to the RSI and it can be used to trade divergence setups just the same way as the RSI indicator.

Commodity Channel Index (CCI) Forex Trading Technical Analysis & CCI Signals

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

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

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

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

CCI FX Trading Divergence Technical Indicator

CCI Forex Trading Divergence Indicator

CCI Bullish Divergence Setups - CCI Divergence Indicator

Classic CCI Bullish Forex Trading Divergence

CCI classic bullish divergence occurs when price is making lower lows (LL), but the CCI technical indicator is making higher lows ( HL ).

Classic Bullish Divergence - CCI Divergence Technical Indicator

CCI classic bullish divergence warns of a possible change in the forex trend from down to up. This is because even though the price went lower the volume of sellers who pushed the price lower was less as illustrated by the CCI indicator. This is an technical indicator of the underlying weakness of the downward trend.

Hidden CCI Bullish FX Trading Divergence

Forms when price is making a higher low (HL), but the CCI technical indicator is showing a lower low ( LL ).

CCI hidden bullish divergence occurs when there is a retracement in an uptrend.

Hidden Bullish Forex Trading Divergence

This set-up confirms that a retracement move is complete. This CCI divergence setup indicates underlying strength of an uptrend.

Bearish Divergence - CCI Divergence Indicator

Hidden CCI Bearish FX Trading Divergence

Forms when price is making a lower high (LH), but the oscillator technical indicator is showing a higher high ( HH ).

Hidden bearish divergence forms when there's a retracement in a downtrend.

Hidden Bearish Divergence - CCI Divergence Technical Indicator

This set-up confirms that a retracement move is complete. This divergence indicates underlying strength of a downtrend.

CCI Classic bearish Forex Trading Divergence

CCI classic bearish divergence occurs when price is making a higher high (HH), but the CCI technical indicator is forming lower high ( LH ).

Classic Bearish Divergence - CCI Divergence Technical Indicator

CCI Classic bearish divergence warns of a possible change in the forex trend from up to down. This is because even though the price went higher the volume of buyers who pushed the price higher was less as illustrated by the CCI indicator. This is an technical indicator of the underlying weakness of the upwards trend.