CCI Oil Technical Analysis & CCI Crude Oil Trading Signals

Developed by Donald Lambert

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

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

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

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

Oil Technical Analysis & How to Generate Crude Oil 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 Oil Trading 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 crude crude oil price starts moving above -100 then that's interpreted as a buy.

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

Buy Trade

Sell Crude Oil Trading 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 crude crude oil price starts moving below +100 then that is a interpreted as sell.

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

Sell Trade

Divergence Oil

Bullish Crude Oil Trading Divergence Setup

Bullish divergence occurs when crude crude oil 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 Oil Trading Divergence Setup

Bearish Divergence occurs when crude crude oil 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 Crude Oil Trading