Use CCI on the bottom of your trading charts to measure the variation of a stocks, forex, futures price from its statistical mean. High CCI above the 0 line show that prices are unusually high compared to average prices. Low CCI values show that prices are unusually low compared to average prices. The CCI is an oscillator that typically fluctuates between –100 and +100.Forex pair prices are thought to be overbought when CCI moves up to the + 100 territory. Prices are considered oversold when CCI moves down into the – 100 territory.
The CCI shows overbought and oversold levels of –100 and +100. CCI extremes correspond to turns in price as seen on the candlestick chart. The change in price in any of the markets that you are trading is where traders decide if they want to buy and sell.