CCI
CCI
Measures deviation from the average price; readings past ±100 mark strong up/down momentum.
How to read it
CCI measures how far price is from its statistical mean, oscillating around 0 with no fixed bounds. Readings above +100 signal an unusually strong up-move; below −100 a strong down-move.
Trading signals
A cross up through +100 can start a long as a momentum breakout; a cross down through −100 a short. A pull back from beyond ±100 toward 0 signals the move is cooling — useful as an exit.
Divergence
CCI diverging from price at an extreme — price a new high while CCI makes a lower high — warns the strong move is losing conviction.
Parameters
Period sets the averaging window; the MA options overlay a smoothing line on the CCI. Shorter periods trip the ±100 levels far more often.
- CCI Period
- Bars over which CCI measures deviation from the mean.
- CCI MA Type
- Averaging method for the CCI smoothing line.
- CCI MA Length
- Bars in the smoothing MA applied to CCI.