CCI and Forex

The speaker provides an overview of a popular technical indicator, the CCI or commodity channel index.  He mentions that the CCI measures the distance of price from its statistical mean over a defined period of time.  High values indicate unusually high prices compared to the norm while low values indicateThe speaker provides an overview of a popular technical indicator, the CCI or commodity channel index.  He mentions that the CCI measures the distance of price from its statistical mean over a defined period of time.  High values indicate unusually high prices compared to the norm while low values indicate unusually low prices compared to average. 

The CCI can be interpreted in two ways.  Traders can use this tool to find divergent market conditions which will signal a change in trend.  Secondly, you can use this indicator to identify overbought or oversold conditions in a particular security.  Values above or below 100 and -100 indicate extreme conditions developing. 

He moves on to provide real trading examples and how he would trade this indicator.