What is the cci indicator? The cci technical indicator is a commonly used technical indicator that was used as a technical reference in the futures market in the early days. The cci technical indicator is calculated by the trend composed of the closing, opening, high and low prices of the stock cycle. The parameter data of the stock trading software is usually in a 14-day period, and the smaller the number of days of parameter data adjustment, the greater the graphical fluctuation.
Application of cci technical indicators
In the reference application of the cci technical indicator, when the cci line (white line) is above the 0 axis, it means that the short-term market is in the bullish direction. Conversely, when the cci (white line) is below the 0 axis, it means that the short-term market is in the bearish direction.
If the cci line (white line) exceeds the 100 and -100 values, it means that the market is in a strong upward or strong downward trend. If the cci line (white line) is in the range of 100 to -100 values, the graph represents the normal market, and the normal market cci technical graph is less referential.
When a stock is in a volume swing, the cci indicator exceeds 100 values, indicating a reference buy opportunity signal for technical graphs. When the stock appeared to be in a volume situation, the cci indicator fell below the -100 value, and the value slowly recovered, indicating the reference to the signal point of the buy opportunity.
Conversely, the stock contracted, with the cci indicator falling below 100, indicating a reference sell risk signal for the technical graph. The stock is in a contraction trend, and the cci index continues to fall close to the -100 value, indicating a reference to sell risk signals. If there is a divergence indicator in the market, it is likely to be a market opportunity or risk.
Overall, the cci technical indicator is to give common reference information for the short and medium term through market price fluctuations. Investors should know that there are no perfect technical indicators in the market, and there will be some misleading information. It is necessary to combine other indicators and market conditions as well as individual stocks to improve the investment success rate.
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