Q: Long entry (Buy)

- CCI crosses above -100 (leaving oversold zone) - CCI > 0 (bullish momentum confirmation)

Q: Exit signals

- Take profit when CCI returns to zero - Exit long when CCI crosses below +100 - Exit short when CCI crosses above -100

Q: Signal examples

| Condition | Use case | |-----------|----------| | `CCI(20) > 100` | Strong uptrend, possible overbought | | `CCI(20) 0` | Bullish bias | | `CCI(20) < 0` | Bearish bias |

Q: Best combinations

- **CCI + RSI**: CCI for trend direction, RSI for entry timing - **CCI + MACD**: Double confirmation of momentum - **CCI + Moving Averages**: Filter trades in trend direction

Q: Parameters

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Number of candles for SMA and mean deviation calculation |

Question 1

What is CCI?

Accepted Answer

CCI (Commodity Channel Index) is a technical indicator that measures the deviation of the current price from its statistical average. It oscillates around zero and is **not bounded** — unlike RSI (0–100), CCI can reach any value. Originally developed for commodity markets, it's now widely used across all asset classes.

Question 2

How it works

Accepted Answer

CCI uses the Typical Price and measures how far it deviates from a simple moving average, normalized by mean deviation: ``` TP = (High + Low + Close) / 3 SMA_TP = SMA(TP, period) Mean Deviation = AVG(|TP - SMA_TP|, period) CCI = (TP - SMA_TP) / (0.015 × Mean Deviation) ``` The constant 0.015 is chosen so that roughly 75% of values fall within ±100.

Question 3

Value range

Accepted Answer

- CCI is **NOT limited** to 0–100 - Oscillates around **zero** - Typical range: -200 to +200 - Extreme values possible: -300, +400, etc.

Question 4

Key levels

Accepted Answer

| Level | Meaning | |-------|---------| | > +100 | Overbought zone / strong uptrend | | 0 | Neutral / equilibrium | | < -100 | Oversold zone / strong downtrend |

Question 5

Long entry (Buy)

Accepted Answer

- CCI crosses above -100 (leaving oversold zone) - CCI > 0 (bullish momentum confirmation)

Question 6

Short entry (Sell)

Accepted Answer

- CCI crosses below +100 (leaving overbought zone) - CCI < 0 (bearish momentum confirmation)

Question 7

Exit signals

Accepted Answer

- Take profit when CCI returns to zero - Exit long when CCI crosses below +100 - Exit short when CCI crosses above -100

Question 8

Signal examples

Accepted Answer

| Condition | Use case | |-----------|----------| | `CCI(20) > 100` | Strong uptrend, possible overbought | | `CCI(20) 0` | Bullish bias | | `CCI(20) < 0` | Bearish bias |

Question 9

Best combinations

Accepted Answer

- **CCI + RSI**: CCI for trend direction, RSI for entry timing - **CCI + MACD**: Double confirmation of momentum - **CCI + Moving Averages**: Filter trades in trend direction

Question 10

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Number of candles for SMA and mean deviation calculation |

Question 11

Tips

Accepted Answer

- An asset can stay beyond ±100 for extended periods — wait for confirmation - Lower timeframes capture short-term impulses - Higher timeframes identify global trends - Standard period is 20, but 14 is popular for faster signals - Consider ±200 levels for stronger signals in volatile markets - Available for all markets: crypto, stocks, forex