CCI BTCUSD Analysis & CCI Trading Signals
Developed by Donald Lambert
The Commodity Channel Index measures the variation of a commodity bitcoin price from its statistical mean/statistical average.
This indicator is an oscillator which oscillates between high levels and low levels
When the CCI is high it shows that bitcoin price is unusually high compared to the its average.
When the CCI is low it shows that bitcoin price is unusually low when compared to the its average.
BTCUSD Analysis & Generating Trading Signals
Overbought/ Oversold Levels
The CCI typically oscillates between ±100.
Indicator values above +100 indicate an overbought conditions & an impending market correction.
Indicator values below -100 indicate an oversold conditions & an impending market correction
Buy Trading Signal
If the Commodity Channel Index indicator is oversold, areas below -100, then there's a pending market correction.
Oversold areas will remain intact until Commodity Channel Index technical indicator starts to move above -100.
When bitcoin price starts moving above -100 then that's interpreted as a buy.
The Commodity Channel buy cryptocurrency signal should be combined with a trendline break signal to confirm the buy.
Buy Trade
Sell Trading Signal
If the Commodity Channel Index is over bought, levels above +100, then there's a pending market correction.
The over bought areas will remain intact until CCI indicator starts to move below +100.
When bitcoin price starts moving below +100 then that's a interpreted as sell.
This Commodity Channel sell cryptocurrency signal should be combined with a trendline break signal to confirm the sell.
Sell Trade
Divergence BTCUSD Trading
Bullish Bitcoin Trading Divergence Setup
Bullish divergence occurs when bitcoin price is making new lows while the CCI is failing to surpass its previous low.
This is a bullish signal because the divergence will be followed by an upward market correction.
Bearish BTCUSD Trading Divergence Setup
Bearish Divergence occurs when bitcoin price is making new highs while the CCI is failing to surpass its previous high.
This is a bearish signal because the divergence will be followed by a downwards market correction.
Technical Analysis in BTCUSD Trading
