CCI overbought & oversold zones
http://forex-indicators.net/files/in...s/ccizones.png
With CCI we can separate indicator readings to 3 zones:
1. Already known, a zone above Zero (bullish) and a Zone below zero (bearish).
Trading rules: when price crosses zero line, Buy/Sell depending on the direction of a crossover.
2. An overbought zone - CCI reading above +100, an oversold zone - CCI reading below -100
Once price moves higher above +100, a strong uptrend has been established. 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. 3. An extremely overbought zone - CCI reading above +200, and an extremely oversold zone - CCI reading below -200.
Take profit & close trades. Prepare for a price reversal.
http://forex-indicators.net/momentum-indicators/cci
http://forex-indicators.net/files/in...s/ccizones.png
With CCI we can separate indicator readings to 3 zones:
1. Already known, a zone above Zero (bullish) and a Zone below zero (bearish).
Trading rules: when price crosses zero line, Buy/Sell depending on the direction of a crossover.
2. An overbought zone - CCI reading above +100, an oversold zone - CCI reading below -100
Once price moves higher above +100, a strong uptrend has been established. 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. 3. An extremely overbought zone - CCI reading above +200, and an extremely oversold zone - CCI reading below -200.
Take profit & close trades. Prepare for a price reversal.
http://forex-indicators.net/momentum-indicators/cci