The CCI is representative of a family of oscillating indicators. This indicator, like the stochastic indicator and the moment, helps to determine when the asset is resold and when it is repurchased.
It turns out that slave with CCI, you can enter the market even before the start of the movement - during the time when the market ends to form a reversal
Indicator cci repurchase and resale
The type of CCI indicator is the moving average, the movement range of which is most often between -100 and 100. If the line goes beyond 100, the asset is likely repurchased, so there are sales coming that will turn the trend. If the trend line drops below -100, it suggests that the market is resold, and purchases are coming that can guide the market up.
Based on this, it will be easy to assume that the signal for sale will be a top-down crossing of level 100.
Forex indicator cci sale
The signal for the purchase will be the intersection of the -100 level line from the bottom up.
Cci purchase signal indicator
The only indicator in the settings that can be changed is the calculation period indicator, which is 14 by default to make the signals more accurate, it is recommended to increase this value.
The indicator itself is unable to claim the title of trading system. However, combined with other indicators like the MACD and Bollinger strip, entry points will appear less frequently, but more accurate, and will make you a good profit.