CCI
Current parameter: CCI(14)
Indicator Features
• The CCI indicator has excellent sensitivity. When the price trend changes slightly, the CCI indicator can always give a trading instruction signal at the first time
• The CCI indicator has an early warning function. When the price enters a strong rising or falling market, the three curves in the CCI indicator will enter the ultra-low or ultra-high area in turn. The higher or lower the value, the greater the possibility of reversal
• CCI indicators are highly compatible with other technical indicators
What is CCI
CCI (Commodity Channel lndex) homeopathic index is an index to measure whether the stock price has exceeded the normal distribution range. It was created by Donald R. Lambert (Donald Lambert). It is a special kind of overbought and oversold indicators. Between positive infinity and negative infinity.
Algorithm
* CCI(n) = (TP－ MA) ÷MD ÷0.015
*TP = (highest price + lowest price + closing price) ÷ 3
*MA = cumulative sum of prices in the last n days (TP)÷n
*MD = Cumulative sum of the absolute value of the last n days (TP-MA ) ÷ n
*The system default n is 14
Usage of CCI
Breakthrough
When the K line breaks through the D line on the graph, commonly known as the golden cross, it is a buying signal. In addition, when the K line and the D line cross upwards below 20, the short-term buying signal at this time is more accurate; if the K value is below 50, cross the D value twice to form a higher golden cross "W" If there is no form, the stock price may have a considerable rise, and the market prospect is promising.
Breakout
When the K value is getting smaller and smaller, and then falls below the D line from above, it is usually called a dead cross, and it is regarded as a sell signal. In addition, when the K line and the D line cross down at the 80 mark, the short-term sell signal at this time is more accurate. If the K value is above 50, crosses below the D line twice in the trend, and dies from the low "M" shape, the market prospect may have a considerable stock price drop.
CCI trading opportunity
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