Commodity Channel Index
(cci)
The introduction of the Indicator:
Cci is a shortcut to (Commodity Channel Index) Any commodity channel indicator).
Developed by Ronald Lambert about 1980 m, although the Ronald price trends for commodities index to determine any identifying the beginning and end of the commodity price cycle in the market through the price of the original data and data of the moving average price of previous days and facts natural deviation of prices of certain mathematical equation status by Ronald, but now traffickers using the equation of the cursor to know the price of any sessions to determine the direction of price points and the end of this direction are not in the market for goods but in general (Forex Capital Markets - shares - Goods) to impose the goods and stocks and currencies move in the sessions (channels) of highs and lows, and has not changed the name of the cursor 61,517,700 to create it (Commodity Channel index).
The indicator definition:
is a set of indicators of the fluctuation (Oscillators), to measure the momentum determine peak levels of procurement in the market saturation (Pmi), which is the highest level of the 100 and peak levels of sales in the market (SATURATION produce available for sale), which is the lowest level of the 100- through the price and the moving average price and the price deviations in the following equation:
CCI = (price. Moving Average) / (for 0.015 * Average deviations).
Of course, no need to calculate the equation in our dealings because the equation is programd in the form of an existing index trading platforms and outlines the bottom of the first photo to clarify the GIVENS.
The composition of the index and its mechanism and how to benefit from it:
_ indicator consists of:
The Trend Chart precision audio oscillator line represents the calculated value to determine the level of points clutch to him.
The Point 0: is the axis of rotation of the price.
The 100 line represents the level of Panyi for lunch purchase.
The line level of the 100-: represents a level of Panyi for lunch.
In addition to the 200 line to represent Panyi for lunch, and purchasing power, doubling the level of 200. to represent Panyi for lunch, full advantage of selling double the emphasis (filter).
The mechanism of its work:
Move the trend line graph cursor position to between levels of 100 and 100. Their remains at 75% of the time, and penetrate these levels exist between the 100 and the 200 or the 100- and 200- by 20% of the time, over and above the 200 or the 200. By 5%, determine the direction of price movement and score reflective or complementary to the trend.
Ways to take advantage of:
1) determining the levels of reflection direction: i.e. when the trend line graph cursor position top of the line level of the 100 We have come Surfeit Pmi any areas of the sale price of the first photo once penetrate the trend line graph of the index line of the level of the 100 down the signal to sell and we can benefit from the 200 level jamming technology any wait for the direction of the graph of the index up 200 and then penetrate the 100 down to do more sell is uncertain, the procurement cases be when the trend line graph of the index below the line of the 100. We have come surfeit produce available for sale any areas of the purchase price of the first photo once penetrate the trend line graph of the index line of the 100.
2) identify follower breakthroughs: Any direction when we see penetrate the trend line graph of the index line of the level of the 100 could expect a breakthrough price to resist close to him on the first photo when this happens we can determine this point penetrating resistance real resistance is broken and as a point of purchase, and at penetrating the graph of the index line of the 100. We expect a breakthrough price to support close to it on the first photo when this happens we can determine this point broken support real support broken and point of sale.
#) A summary of the benefit of the CCI: in other words we use the trend line graph of the index to determine the direction and pace of price levels of the 100 and the 100. The support lines and the RESISTANCES confirm the subsidies and real defenses on the first photo price range either Unbroken by pursuing the direction or rebounding from then reflects the trend, of course, therefore we consider error levels of 200 and 200. They support stronger resistance lines (filter relates).
The Cci can be used to determine the occurrence of detente ( feature).
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