What is CCI indicator?

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The CCI indicator is will vary throughout each trading day as global financial centers open and close in their respective time zones.The CCI has seen substantial growth in popularity amongst technical investors; today’s traders often use the indicator to determine cyclical trends in not only commodities, but also equities and currencies.

CCI indicator for metatrader

CCI indicator is a versatile indicator that can be used to identify a new trend or warn of extreme conditions. Lambert originally developed CCI to identify cyclical turns in commodities, but the indicator can successfully applied to indices, ETFs, stocks and other securities. In general, CCI indicator measures the current price level relative to an average price level over a given period of time. CCI indicator is relatively high when prices are far above their average. CCI is relatively low when prices are far below their average. In this manner, CCI indicator can be used to identify overbought and oversold levels.
CCI indicator measures the difference between a security’s price change and its average price change. High positive readings indicate that prices are well above their average, which is a show of strength. Low negative readings indicate that prices are well below their average, which is a show of weakness.

The CCI indicator used in conjunction with other oscillators,the CCI indicator can be a valuable tool to identify potential peaks and valleys in the asset’s price, and thus provide investors with reasonable evidence to estimate changes in the direction of price movement of the asset.

An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold. The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset’s price, a moving average (MA) of the asset’s price, and normal deviations from that average.