The CCI was developed by Donald Lambert in 1980. It measures the momentum of the price with a line at the bottom of the chart.
The CCI measures the current price with respect to an average of the price during a period of time.
It fluctuates around the value zero. Then, when the price rises above its average, the CCI line increases, and viceversa when the price decreases below the average.
The CCI is mainly used through overbought and oversold crossovers and divergences.
Therefore, when the CCI goes into the oversold zone, it suggests that the price has deviated too much from its average, and it is likely to go back up, then signalling a buy. When the CCI crosses the overbought zone, the opposite happens and it generates a sell signal.
What strategies or Bottrex is available for this indicator?
- Abaixo do Valor: When or current value estiba abaixo do value that you defined.
- Acima do Valor: When or current value estima acima do value that you defined.
- Ascendant Crossing: When or current value to cross to the top of the value that you defined. Ex .: Present value at 30. No previous candle was at 29, depois subiu e cruzou os 30 e foi para o 31, it could mean one entry. This option includes a safety limiter for buying when or at the current value of the current indicator with a value of + 10, for example: it is defined as a value of 30, or its safety limiter will be 40 if it is going to be ordered or current value. estiver abaixo de 40.
- Descending Cross: When or current value to cross for the value that you defined. Ex .: Present value at 30. No previous candle was at 31, depois desceu e cruzou os 30 e foi para o 29, it could mean one entry.