What is CCI in forex trading?

The Commodity Channel Index (CCI) is a technical indicator that measures the difference between the current price and the historical average price. When the CCI is above zero, it indicates the price is above the historic average. Conversely, when the CCI is below zero, the price is below the historic average.

How do I trade with CCI?

The chart indicates that you should take a short trade when the CCI rallies above +100 and then drops back below +100 on the shorter-term chart. Traders would then exit the short trade once the CCI moves below -100 and then rallies back above -100.

What is the best settings for CCI indicator?

the standard setting on the CCI indicator is 14, meaning it will measure recent price changes against average price changes over 14 time periods. … a setting of less than 14 results in a more reactive average that oscillates between the +100 and -100 levels more frequently and does not stay in either cycle very long.

Is CCI a good indicator?

First of all, you should remember that the CCI indicator is not a good standalone tool. Like any other oscillator, the CCI needs to be combined with an additional trading tool. In this article, we will combine the CCI indicator with the stochastic RSI.

Which indicator works well with CCI?

It is extremely important, as with many trading tools, to use the CCI with other indicators. Pivot points work well with the CCI because both methods attempt to find turning points. Some traders also add moving averages into the mix.

Is CCI a leading or lagging indicator?

The Commodity Channel Index (CCI) can be used as either a coincident or leading indicator. As a coincident indicator, surges above +100 reflect strong price action that can signal the start of an uptrend.

Is CCI a lagging indicator?

What does CCI indicator measure?

Description. The Commodity Channel Index (CCI) measures the current price level relative to an average price level over a given period of time. CCI is relatively high when prices are far above their average. CCI is relatively low when prices are far below their average.

How do you set up a CCI indicator?

Right-click the CCI (you will have to be exact on the line of the indicator to get the menu seen below) Choose CCI(14) Properties – The (14) is the respective parameter (Periods) and can differ, depending on your choice when setting the parameters.