CCI in cryptocurrency: how to use the commodity channel indicator to determine price trends

Using the Commodity channel indicator (CCI) for technical analysis of price trends in cryptocurrency. What is CCI and how it works, as well as how this indicator can be used to determine the direction and strength of the current trend.

CCI stock indicator - that it shows how to use it when trading cryptocurrency.


CCI is the index of the commodity channel, which allows the user to make a profit in a flat state. CCI appeared in the 80s, its creator is D. Lambert. For continuous development and increase of earnings, it is necessary to continuously study indicators and the principles of their work.


With the help of the indicator, you can predict further changes in prices and quotations. CCI is ideal for use in a side channel, that is, without a trend. The indicator shows both standard signals and its own personal signals developed by specialists.


An important advantage of CCI is accessibility. In the application, launch it by pressing one button.The principle of operation is based on the laws of the market, namely on cyclicity.


For example, if there is an active increase in the price now, then it will soon be possible to observe its decline. With such a simple but effective algorithm, you can easily predict the future behavior of the cost.Features of the CCI indicator


It is important to understand when a trend ends and a new one begins, and this can be done by defining cycles.


The CCI indicator shows price fluctuations in various markets. The specifics of the market are not critical, since the indicator takes average values into calculations. The developer of the indicator recommends using it during the periods of 20 and 60 days, since he took into account these intervals when creating.You can also set the period in the settings: the longer it is, the smoother the line will be.


But it should be borne in mind that with rare periods, the number of signals decreases, but at the same time their quality becomes much better. With rare signals, the user has more chances to increase income and close the deal.Experts distinguish the following features of the indicator:


· high-quality work is observed in the daily and hourly schedule.


Other oscillators are configured to work efficiently for medium-term analysis;· it is possible to perform analysis using graphs;

· CCI has several levels different from other oscillators.

 If we talk about visualization, CCI is represented as a scale above the graph.


Its value most often ranges from -100 to +100, the visible range is from -200 to +200, a rare case when you can see indicators from -500 to +500. The price, as a rule, is most located on the average indicator. Going beyond the average, the price reaches overbought or, conversely, oversold.According to the indicators of the indicator, it can be concluded that if the price is closer to +100, then soon it will change the trend and go down.


The price cannot follow one direction for a long time, the indicator falls, then rises.Setting up the indicator


The key function is played by the period setting.


The frequency and quality of the signals depend on it. In simple words, the period is the number of candles in the calculation and analysis. If you look at the default settings, it costs 20, this indicator is considered basic and is suitable for most assets.Setting up the indicator is a very important step for the user, the success and correctness of the signals depend on it.


Each specialist individually creates settings for himself, since there is no ideal option.Summing up, we note that CCI is actively used by both beginners and professionals.


The indicator is quite easy to understand and configure. With the right setup, you can receive high-quality signals and make a profit from it.

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