What is the Commodity Channel Index (CCI)?
Traders often use mean reversion strategies to profit from volatility and momentum strategies to profit from trends – and both of these strategies rely heavily on momentum oscillators.
Day traders look for short-term moves away from the mean and use scalping strategies to profit from a return to the average, while swing or position traders use the same technical indicators to spot changes in trends. So, it’s important for all kinds of traders to understand how to use popular momentum oscillators to their advantage.
In this article, we will look at one of the most popular technical indicators for these kinds of strategies – the Commodity Channel Index, or CCI.
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