Type of Indicators CCI is a versatile indicator that can be used to identify a new trend or warn of extreme conditions. Lambert originally developed CCI to identify cyclical turns in commodities, but the indicator can successfully applied to indices, ETFs, stocks and other securities.

1. Chapter - 1
Commodity Channel Index (CCI)

2. Commodity Channel Index (CCI)
CCI is a versatile indicator that can be used to
identify a new trend or warn of extreme
conditions. Lambert originally developed CCI to
identify cyclical turns in commodities, but the
indicator can successfully applied to indices,
ETFs, stocks and other securities.

3. • CCI measures the current price level relative
to an average price level over a given period of
time
• CCI can be used to identify overbought and
oversold levels.
• CCI above 100 level it’s overbought
• CCI below -100 level its oversold levels

4. How to trade with CCI
• A basic CCI strategy is to watch for the CCI to move
above +100 to generate buy signals
• move below -100 to generate sell or short trade signals
• exit when the sell signals occurs and then re-invest
when the buy signal occurs again
• The strategy does not include a stop loss
• When buying, a stop loss can be placed below the
recent swing low;
• When shorting, a stop loss can be placed above the
recent swing high.

7. Silver H1