Commodity Channel Index CCI is a hugely popular indicator among traders. Although novice traders tend to pay little attention to CCI in the beginning of their lerning curve, later they return to discover amazing potential and beautiful simplicity of the CCI indicator.

There is a variety of CCI indicators, just by looking at the screenshot below with various CCI versions, it becomes understandable - there is huge package of trading methods behind each simple and custom CCI indicator.

CCI indicator was created to identify bullish and bearish market cycles as well as to define market turning points, market strongest and weakest periods. Designed for commodities, CCI has quickly found its application in other markets including Forex.

It goes as follows: Opposite true for downtrends and readings below Since when CCI indicator was first introduces, traders have found lots of ways to interpret CCI and expand trading rules. An aggressive way to enter the market is to react to CCI's line crossing its zero level. When CCI moves above Zero, traders would Buy the currency expecting a newly changed trend to hold. Vice versa, when CCI falls below zero, traders would Sell looking to benefit from early signals of an emerging downtrend.

Hold on to a Long position, but prepare to exit as soon as beautiful tall candlesticks yield place to smaller reversal candles with long shadows and small bodies.

With what we know so far, we can already read and trade with CCI indicator. Let's walk through the numbers on the screenshot below:. The moment it entered there, we could have placed a Buy order, since we know that a strong uptrend has been established. With CCI exiting from an extremely overbought zone is a perfect opportunity to initiate our first Short trade.

At the same time, should we never witness CCI abovewe'll be still holding our Buy position open, because CCI continues to trade inside an overbought zone.

So, the difference is whether there was a rise above or not. If we erase 2 event from the chart, we're trading trading cci forex an overbought zone and continue to hold out Long position.

We can open yet another Short trade. We can add up to a Short trade and hold till we find that CCI rises back above I do think you have seriously consider building this website, comparing to Babybips but I felt this is much better education than babypips.

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Please you can improve your website and I am sure more people will visit you. 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 trading cci forex be. Should I be using or could I use it on the h4 visa work from home and 60 minute savage 22-250 stocks 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 heidi moneymaker tomb raider your trading analysis.

Thank binary options methods labels 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.

How Forex Traders Use CCI to Trade GBPUSD

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.

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Commodity Channel Index CCI Commodity Channel Index CCI is a hugely popular indicator among traders. CCI download box CCI. CCI and its Zero line An aggressive way to enter the market is to react to CCI's line crossing its zero level. Already known, a zone above Zero bullish and a Zone below zero bearish. Prepare for a price reversal.

How to Trade Commodity Channel Index (CCI) in Forex

CCI indicator signals Bonus: CCI trading walkthrough With what we know so far, we can already read and trade with CCI indicator. Let's walk through the numbers on the screenshot below: CCI on 5 or 1 min - not a problem, if you want to scalp you can sure use it. This is GREAT STUFF!

I LOVE YOUR CCI Histogram MATCHED UP WITH THE SNIPER SIGNALS! Great site and a real help to me, I am just starting fx trading Thanks a lot GB. Great site, many thanks Just one question: