The CCI, when used in conjunction with other indicators, can provide investors with reasonable evidence to estimate changes in the direction of price movement of the asset. In conjuntion with the RSI (Relative Strength Index), LRS (Linear Regression Slope), and a 15 minute bar chart the CCI becomes a powerful sign post for guiding your trade.

Closes on 15 minute bar segments that lie outside Bollinger Bands help mark the territory within which a trader will be led to the perfect moment to enter a trade.

Correlation between indicators is critically important in the assessment of the entry into a trade. And CMAA (Conductive Market Anomaly Analyzation) as your anomaly hunting software can pre-evaluate your stock picks and currency pairs.

Why the Commodity Channel Index can be useful?

In any given day of trading a stock or currency pair pricing may move into and out of various points within the commodity channel index range which helps the trader navigate price movements.

Trader's Tip: Consider using the -200 and 200 lines rather than the -100 and 100 lines. As the CCI climbs past these marks dependent on whether you are buying or selling this provides strong evidence as to what direction your trade may be turning especially when correlated with other indicators across time overlays.

The CCI is considered beneficial in the following ways:

• Can be used across securities markets including stocks, commodities, and foreign exchange.
• Is readily available in software applications and presented in graphical format.
• Indicates where a securities price stands in relation to CCI range helping traders determine possible entry and exit points for trading.
• Points out where a stock, commodity or other security may be overbought or oversold.
• Provides an ongoing measurement throughout the trading day.