CCI or Commodity Channel Index is a type of oscillator designed to show market’s trending conditions to a trader, so that he or she may assess the situation correctly. If you have already mastered the basics of binary options trading, this may be a very good way to continue developing your trading skills, and our trading experts are going to help you with that. This index can help you a lot to react quickly when a trend starts to develop, which means it can sometimes be crucial in making profit off your investments. Allow us to explain to you some finer details behind this index, just to make things perfectly clear. Read on!

CCI | How to use it

First of all, CCI is used to grasp the way trends are going to develop, so many people consider it to belong to the group of Trend Indicators just as much as to oscillators. Most brokers that offer this tool set its main levels to 100 and -100, but do not think that these levels cannot be broker. Quite the contrary, strong trends tend to pass these milestones quite easily. When using the CCI, try also to plot the 0 level on your chart because it will give you a much better view of the situation and show you how strong a trend is and what can be expected of it. Make sure the situation is nice and clear on your screen, so that you can quickly extract all relevant information from it. But stay with us, these are just the basics.

CCI | Quick to react

What is particularly interesting about the CCI is the fact that it reacts extremely quickly, much more so than, for example the RSI. Because of this, it is extremely important to keep track of the time frame you’re using on your chart, as the differences in the CCI’s behaviour can be very significant. CCI can reach its overbought and oversold levels fairly quickly, so you need to be ready to react. In addition, this Oscillator usually does not show any major divergence, which is another difference between it and other important oscillators. Taking all these things into consideration is a must if you want to use this tool properly, therefore you should always make the necessary preparations before you start trading. After that, everything becomes much easier.

CCI | Conclusion

CCI is a type of oscillator that exhibits many unique features. Many people also consider it to be a trend indicator, it reacts extremely quickly to market changes and it can be very sensitive to the timeframe you choose to use on your chart. If you haven’t mastered the basic of trading binary options, spending some time studying that may be a good idea, since it takes some skill and experience to use this tool properly. However, if you feel up to the task – go for it. Mastering this tool will help you a lot on your way to profit.



1. Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets (N. Taleb, 2005)
2. A course in financial calculus (A Etheridge – 2002)
3. Patterns of Investment Strategy and Behavior Among Individual Investors (Wilbur G. Lewellen, Ronald C. Lease and Gary G. Schlarbaum-1977)
4. Midas Technical Analysis: A VWAP Approach To Trading And Investing In Today’s Markets (A. Coles, D. Hawkins, 2011)
5. Liar’s Poker (M. Lewis, 2010)

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Author: Ben Prescott

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