Commodity Channel Index tracker may be used by traders to track market trends that are overbought or oversold. You can find it below the price chart when plotting the commodity channel index as a line oscillating within the box. The Indicator should be remembered as being an unbounded oscillator.
However, though some trading platforms have the option for the trader to adjust the range, the range from 100 to–100 is offered by default. The default cci indicator system is 20 cycles that you may adjust the amount of periods according to your preferences.
Keep in mind that CCI will be more volatile for a shorter period and higher portion will be above or below the values of 100 and -100. Of course, the longer CCI period will mean that there will be a smaller percentage outside the range of 100 do -100.
Traders interpret the CCI readings over 100 as the probability that an uptrend may begin, whilst an warning for the start of a downtrend may be a reading below -100.