CCI Metals Analysis & CCI Trading Signals

Developed by Donald Lambert

Commodity Channel Index measures the variation of a commodity metals price from its statistical mean/statistical average.

This metals indicator is an oscillator which oscillates between high levels and low levels

When the CCI is high it shows that metals price is unusually high when compared to the average.

When the CCI is low it shows that metals price is unusually low as compared to the average.

Metal Analysis & How to Generate Trading Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

Indicator values above +100 indicate an overbought conditions & an impending market correction.

Indicator values below -100 indicate an oversold conditions & an impending market correction

Buy Trading Signal

If the Commodity Channel Index indicator is oversold, areas below -100, then there is a pending market correction.

Oversold levels will remain intact until Commodity Channel Index technical indicator starts to move above -100.

When metals price starts moving above -100 then that's interpreted as a buy.

The Commodity Channel buy metals signal should be combined with a metals trendline break signal to confirm the buy.

Buy Trade

Sell Trading Signal

If the Commodity Channel Index is over bought, levels above +100, then there's a pending market correction.

The overbought areas will remain intact until Commodities Channel Index indicator starts to move below +100.

When metals price starts moving below +100 then that's a interpreted as sell.

This Commodity Channel sell metals signal should be combined with a metals trendline break signal to confirm the sell.

Sell Trade

Divergence Metal Trading

Bullish Metals Trading Divergence Setup

Bullish divergence occurs when metals price is making new lows while the CCI is failing to surpass its previous low.

This is a bullish signal because the divergence will be followed by an upward market correction.

Bearish Metal Trading Divergence Setup

Bearish Divergence occurs when metals price is making new highs while the CCI is failing to surpass its previous high.

This is a bearish signal because the divergence will be followed by a downwards market correction.

Technical Analysis in Metals Trading