CCI Divergence Technical Indicator

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

CCI Technical Analysis & CCI Trade Signals

Commodity Channel Index(CCI) estimates the variation of the commodity price from its statistical average.

CCI is an oscillator that oscillates between high levels and low levels

When the Commodity Channel Index(CCI) is high it shows that price is unusually high when it is compared & analyzed to its average.

When the Commodity Channel Index is low it shows that price is unusually low when it is compared and analyzed to its average.

CCI Divergence Indicator

CCI Divergence Indicator

CCI Bullish Divergence Trading Setups

Classic Commodity Channel Index Bullish Divergence Trading Setup

CCI classic bullish divergence setup occurs when price is forming/making lower lows ( LL ), but the Commodity Channel Index trading indicator is forming/making higher lows (HL).

CCI Divergence Indicator

CCI classic bullish divergence warns of a possible reversal in the trend from downward to upward. This is because though the price headed lower the volume of the sellers that moved price lower was less just as displayed and illustrated by the CCI technical indicator. This is an indicator of the under-lying weakness of the downwards trend.

Hidden Commodity Channel Index Bullish Trading Divergence

Forms when price is making/forming a higher low ( HL ), but the Commodity Channel Index(CCI) technical indicator is displaying a lower low (LL).

CCI hidden bullish divergence forms when there's a retracement in an up trend.

Indices Hidden Bullish Divergence Setup

This setup confirms that a retracement move is complete. This CCI divergence trade setup shows under-lying power of an upward trend.

Bearish Divergence Trade Setup

Hidden CCI Bearish Divergence Trade Setup

Forms when price is making/forming a lower high ( LH ), but the technical indicator is displaying a higher high ( HH ).

Hidden bearish divergence trade setup occurs when there a retracement in a down-ward trend.

Index Hidden Bearish Divergence - CCI Divergence Technical Indicator

This setup confirms that a price retracement move is complete. This divergence reflects the under-lying power of a downward trend.

CCI Classic bearish Stock Indices Divergence Trading Setup

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

Index Classic Bearish Divergence - CCI Divergence Technical Indicator

CCI classic bearish divergence warns of a possible reversal in the trend from upward to downward. This is because though price headed higher the volume of the buyers that moved price higher was less like as illustrated/shown by CCI indicator. This is an indicator of the underlying weakness of the upwards trend.

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