Gold Prices Slide into Swing Support. Trend-Line Support as New Resistance. Short Term Strategies, Scalping, Price Action Analysis, and Risk Management. When traders need an indic ator for planning an entry for a trending market trading plannormally oscillators come to mind. Oscillators are a class of indicators designed to track price by moving oscillating either above or below a centerline.

Today we will review CCI Commodity channel indexwhich is a popular oscillating indicator and discuss how we can use it to trade retracements back in the trend.

If you are already familiar with other oscillators such as RSI Relative Strength Indexyou may already be familiar with how to read CCI. Both indicators use a mathematical equation to depict overbought and oversold levels for traders.

Pictured above we can see these levels marke d with CCI moving between them. This means traders will need to remain patient while waiting for one of these scenarios to occur. Knowing this, trend traders will wait for the indicator to move outside of one of these points before reverting back in the direction of the primary trend.

Due to the recent strength of the Dollar, and knowing that price the price of Gold has been moving generally lower, trend traders should look cci indicator forex trading stock market reaction to oil price changes new selling positions.

Trade Forex With The CCI Indicator

This creates an opportunity to sell the currency as momentum is returning back in the direction of the trend. Traders should only enter after a full candle close on their chart, thus confirming a reading under the overbought value. The above chart shows several past entries on A method of doubling the bet on binary options using CCI as an entry mechanism.

Currently CCI is reading near its center line, so traders will need to wait for an cci indicator forex trading to trade wait to trade the next retracement of the commodity. To contact Walker, email instructor dailyfx. Follow me on Twitter WEnglandFX.

Want to learn more about trading CCI?

Money A2Z

Sign up for our free CCI training course and learn new ways to trade with this versatile oscillator. Register HERE to start learning your next CCI strategy! DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Market News Headlines getFormatDate 'Wed Jun 21 Technical Analysis Headlines getFormatDate 'Wed Jun 21 Trend-Line Support as New Resistance getFormatDate 'Wed Jun 21 Education Beginner Intermediate Advanced Expert Free Trading Guides.

Click here to dismiss.

Get Your Free Trading Guides With your broad range of free expert guides, you'll explore: News getFormatDate 'Wed Jun 21 News getFormatDate 'Tue Jun 20 Short Term Strategies, Scalping, Price Action Analysis, and Risk Management Connect via: Talking Points Oscillators can be used to trigger trades with the trend. Entries with CCI occur when momentum returns with the trend.

Pound Sterling Continues to Shine getFormatDate 'Fri Dec 06 Upcoming Events Economic Event.

Forex Economic Calendar A: NEWS Articles Real Time News Daily Briefings Forecasts DailyFX Authors. CALENDAR Economic Calendar Webinar Calendar Central Bank Rates Dividend Calendar.

Commodity Channel Index Strategy - How to Use the CCI in Forex Trading

EDUCATION Forex Trading University Trading Guide. DAILYFX PLUS RATES CHARTS RSS. DailyFX is the news and education website of IG Group.