CCI Indicator is a masterpiece indicator that was developed by Donald Lambert in 1980. He introduced this indicator in the Commodities magazine and since then this indicator has gained huge popularity and success. In this blog, I will cover everything about CCI Indicator and how you can use the same to find buy and sell signals on Binomo trading platform.
Key Points about Commodity Channel Index
- CCI Indicator is a trend indicator that was developed by Donald Lambert in 1980. This indicator was introduced by Donald Lambert in Commodities magazine.
- CCI Indicator or you call it Commodity Channel Index is a momentum-based oscillator that helps us to identify the upcoming trends and reversals.
- This indicator works exactly like RSI (Relative Strength Index). Just like RSI, it uses a single simple moving average that oscillates around the +100 line and -100 line.
- When the moving average line is oscillating above line +100 it signals that the security is at an overbought level and similarly, When the moving average like oscillating below line -100 it signals that the security is at an oversold level.
- The CCI indicator is made from the mathematical formula that uses the input of Typical Price, Moving average and Standard Deviation.
How to add CCI Indicator on Binomo?
CCI is free to use and you can even use this indicator on the Binomo demo account. In case, you don’t have a Binomo demo account click here. In the demo account, you will get $10, 000 and access to multiple indicators. Once, you have become a member of the Binomo trading platform now, set your default chart to candlestick and make sure to find your desired currency via the currency button at the top of the page. Lastly, click on the indicator button and select CCI indicator from the list. If you want to make certain arrangements in the indicator click on the gear button and make changes from the same.
Buy with an Oversold level
When the CCI indicator line is below line -100 it signals an upcoming bullish trend and here you can place a buy trade according to the time frame of the chart.
Sell with Overbought Level
Similarly, when the CCI indicator is above line +100 it indicates an upcoming bearish trend and here you can place a sell trade according to the time frame of the chart.
Summary
CCI indicator or you call it Commodity Channel Index is one of the most popular trend indicators that helps us to identify the upcoming trends and reversals of security. The indicator was developed by Donald Lambert in 1983 and he introduced this indicator in the Commodity magazine since then this indicator has gained huge popularity and success. This indicator works just like the RSI indicator and uses a single simple moving average that oscillates around the +100 line and -100 line. When the moving average line is above line+100 it signals that the security is at an overbought level and similarly, When the moving average like oscillating below line -100 it signals that the security is at an oversold level.
Try the CCI indicator on the Binomo trading platform for free.