EURUSD 1.1856 USDJPY 111.62 USDCAD 1.2373 EURCZK 26.031 USDCZK 21.951 EURPLN 4.2727 USDPLN 3.6043
EURUSD 1.1856 USDJPY 111.62 USDCAD 1.2373 EURCZK 26.031 USDCZK 21.951 EURPLN 4.2727 USDPLN 3.6043

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The CCI may be used to identify a possible trend reversal or warn about a market price moving close to its extreme levels

Rule of thumb

Interpretation of the CCI also includes an analysis of divergences between the market price and the oscillator, with the CCI considered to be the leading indicator in the case of discrepancies

This indicator was developed by Donald Lambert, and may be used to identify a possible trend reversal and untypical market conditions. Basically, the CCI measures the current price in relation to an average price level over a period of time.

 

cci, commodity channel index

 

The default number of periods in trading platforms is usually 14. The CCI will assume high values when prices are above their average, and consequently it will have low values when prices are below their average.

 

The CCI formula is constructed in a way that typically 60% to 80% of the time CCI values would fall between -100 and +100. This, however, depends also on the number of observations considered in the analysis, as the longer the period observed is, the smoother  the CCI line, and more of its values fall in the central range.

 

Typically values above +100 may indicate the strength of  a market and possible upward trend, while values below -100 signal market weakness and its potential descending tendency. 

 

How to use it with MetaTrader 5:

  • Go to MetaTrader 5 - Insert - Indicators - Oscillators - Commodity Channel Index.
  • Indicate the requested period for this indicator, the default value is 14.
  • The CCI indicator will be created automatically by MetaTrader 5.

Pola oznaczone gwiazdką są wymagane.

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