CCI Divergence Technical Indicator

CCI technical indicator is one of the oftenly used divergence indicator. This stock indices indicator is an oscillator similar to the RSI and it can be used to trade divergence setups just the same way as the RSI indicator.

CCI Stock Indices Technical Analysis & CCI Trading Signals

Commodity Channel Index measures the variation of a commodity stock indices price from its statistical mean ( statistical average ).

CCI technical indicator is an oscillator which oscillates between high levels & low levels

When the CCI is high it shows that stock indices price is unusually high when it is compared to its average.

When the CCI is low it shows that stock indices price is unusually low when it is compared to its average.

CCI Divergence Technical Indicator

CCI Divergence Technical Indicator

CCI Bullish Stock Indices Trading Divergence Setups

Classic CCI Bullish Indices Trading Divergence

CCI classic bullish divergence occurs when stock indices price is forming lower lows ( LL ), but the CCI indicator is making higher lows (HL).

CCI Divergence Technical Indicator

CCI classic bullish divergence warns of a possible change in the indices trend from down to up. This is because even though the stock indices trading price went lower the volume of sellers that pushed the stock indices price lower was less as shown by the CCI technical trading indicator. This is an technical indicator of the underlying weakness of the downwards trend.

Hidden CCI Bullish Stock Indices Trading Divergence

Forms when stock indices price is forming a higher low ( HL ), but the CCI indicator is showing a lower low (LL).

CCI hidden bullish divergence occurs when there is a retracement in an upwards indices trend.

Indices Hidden Bullish Divergence

This setup confirms that a retracement move is complete. This CCI divergence setup indicates underlying strength of an upward indices trend.

Bearish Stock Indices Trading Divergence Setup

Hidden CCI Bearish Indices Trading Divergence

Forms when stock indices price is forming a lower high ( LH ), but the oscillator indicator is showing a higher high (HH).

Hidden bearish divergence occurs when there is a retracement in a downwards trend.

Indices Hidden Bearish Divergence - CCI Divergence Technical Indicator

This setup confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards indices trend.

CCI Classic bearish Stock Indices Trading Divergence

CCI classic bearish divergence occurs when stock indices price is showing a higher high ( HH ), but the CCI technical indicator is lower high (LH).

Indices Classic Bearish Divergence - CCI Divergence Technical Indicator

CCI Classic bearish divergence warns of a possible change in the indices trend from up to down. This is because even though the stock indices price went higher the volume of buyers that pushed the stock indices trading price higher was less as illustrated by the CCI indicator. This is an technical indicator of the underlying weakness of the upwards trend.