CCI and Forex
Video:
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 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.
|
|
Learn winning day trading strategies for profiting in the stock market.
Technical Analysis
Learn about chart patterns, candlesticks, and technical indicators.
Learn all about collars, straddles, strangles and a host of other options trading strategies.
Advice on retirement planning, college saving, mortgages, and real estate.
Discover how to identify undervalued stocks that have strong fundamentals.
Learn about the different types of bonds available to investors.