The
Commodity Channel Index (CCI) calculates the diffrence between the prices
and a given MA divided by 1.5 x of its standard deviation. It is speed market
indicator. When the market is flat, the calculated difference is lower than
its standard deviation and the CCI stays between its thesholds. When the
market is following a trend, the diffrence prices / MA becomes important
and the CCI gets greater than the theshold.
Trading
Signals
- CCI > +threshold : Buy,
- CCI between +threshold and -threshold : Close Trade,
- CCI < -threshold : Sell.