Great work and great site. This section contains thousands of applications that analyze financial markets using different algorithms. Backtesting involves retroactively testing the parameters of the indicators against historical price action. Take a free trading course with IG Academy Our interactive online courses help you develop the skills of trading from the ground up. Draws an ATR envelope surrounding price action and assists you in setting proper stoploss and takeprofit levels.
Commodity Channel Index (CCI)
Thank you for your feedback! I'll do my best to improve it; just unlike with huge websites which have several people behind them, I'm working on this website alone. Thus, I admit I'm doing a much slower progress at the moment. Thank you for your support! I thought I would mention this site is very nicely laid out, and is a resource I think I'll be returning to frequently. This is my first visit. I now understand forex indicators better.
I'd need to make a separate page for it. I might be able to do it by the end of this week. Please check back later. Please visit new page with text-decoration: The choppy zone indicator I don't have, I'm sorry.
I really like this indicator and see how useful it can be. Should I be using or could I use it on the 15 and 60 minute chart? CCI can be successfully used across all time frames: You can be a position trader or a scalper, CCI indicator will always give you the edge in your trading analysis. Thank you for your simple but clear information. This is indicator is great but but rarely used in forex classes.
Your site is amazing. Thank you for sharing your knowledge. I was using the CCI before coming to your site but, not to its fullest potential. You have helped me to use it in a very positive way. I like understanding the underlying principles for charts which is why I have to come to your site. Yours is the only place I have even been able to find these indicators and how grateful I am to have found them. I can't thank you enough for taking the time to explain all these indicators so well to us.
I believe in the concept that knowledge is the most valuable thing you can have and you have provided much of that knowledge. Great work and great site. Thank you for creating such a fantatic resource of valuable and useful information. Your site, even though you are not a huge site, is the best ive found after visiting many many such sites! You are really great man.. The Commodity Channel Index CCI indicator is a popular indicator which you will find included in most charting packages and I personally know a few traders that use this to find divergence in the market and trade it.
When the user attaches the CCI to their chart that need to input in the period value, the default is This value is further divided by 0.
This raises a yellow flag straight away because moving averages lag and that is going to directly affect the output of the CCI by producing a lagging value. The general idea is to get into the market when the price hits the high range or a low range. It reveals where the market will be exhausted and is likely to reverse. This unreliability makes it hard for the trader to find a logical place to position their stop loss. It is as obvious as a Chuck Norris movie ending.
The bottom line here is the indicator really just imitates the overall chart movement. Some traders enter their trade in the direction of the 0 line break. Many hold on until it strikes bottom before they get out or they wait until it strikes the top. The example shows the CCI cutting through the 0 level, if you traded ever cross over here the trade either fails straight away, or climbs into negligible profits before caving in on itself.