Forex Trading Library

Explaining the CCI – Commodity Channel Index!

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In this short video we look at the CCI – Commodity channel Index!

This MT4 indicator is used to analyse if the market is currently overbought or oversold. Originally developed by Donald Lambert, its use was initially applied to commodities (hence it’s name).

Now however, after being applied into the MT4 platform, can be used on a variety of financial instruments including FX, indices, ETFs, stocks, and securities. 

The index takes the current price relative to an average price level over a defined time period. When prices are really high, as in above average the CCI also reads high. This is true for the opposite, when prices are below average the CCI reading is low.

We’ll be continuing our MT4 Indicator educational videos series through the weeks so stay tuned for more learn to trade resources!

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