CCI Indicator on Quotex — Commodity Channel Index
CCI Formula and Mechanics
CCI = (Typical Price − Moving Average of Typical Price) / (0.015 × Mean Deviation). 'Typical Price' = (High + Low + Close) / 3. The 0.015 constant scales the output so that approximately 70-80% of values fall between +100 and -100 (defining the 'normal' range). Values outside ±100 are statistical extremes. CCI is unbounded (theoretically infinite) unlike RSI/Stochastic which are bounded 0-100. Most CCI moves stay within ±200, with ±300+ being rare extreme readings.
Default Settings and Levels
| Parameter | Default Value | Use Case |
|---|---|---|
| Period | 20 | Standard CCI |
| Overbought level | +100 | Recent move is extreme up |
| Oversold level | -100 | Recent move is extreme down |
| Strong overbought | +200 | Very rare; potential reversal |
| Strong oversold | -200 | Very rare; potential reversal |
CCI Signals
- Signal 1 — CCI crosses above +100 → strong uptrend confirmation (continuation signal)
- Signal 2 — CCI crosses below -100 → strong downtrend confirmation
- Signal 3 — CCI returns from extreme (>+200 falling, or <-200 rising) → potential reversal
- Signal 4 — CCI divergence from price → trend exhaustion warning
- Signal 5 — CCI zero-line cross → trend direction change
CCI Strategies
- Strategy 1 — CCI extreme reversal: enter PUT when CCI > +200 reverses below +100; CALL when CCI < -200 reverses above -100. Win rate 60-65%.
- Strategy 2 — CCI continuation: enter in direction of CCI when CCI > +100 (uptrend) or < -100 (downtrend) on pullbacks
- Strategy 3 — CCI divergence: price higher high but CCI lower high = bearish divergence signal
- Strategy 4 — CCI + horizontal S/R: CCI extreme at recognized support/resistance = high-confidence setup
CCI vs RSI Comparison
| Aspect | CCI | RSI |
|---|---|---|
| Scale | Unbounded (-300 to +300 typical) | 0 to 100 (bounded) |
| Overbought | +100 (or +200 for strong) | 70 (or 80 for strong) |
| Oversold | -100 (or -200 for strong) | 30 (or 20 for strong) |
| Reactivity | Faster | Slower |
| Reliability | Good — comparable to RSI | Slightly more reliable |
| Best for | Trend continuation + extremes | Reversal at extremes + divergence |
CCI FAQ
Why is it called 'Commodity Channel Index' if used for forex?
Lambert originally designed CCI for commodity trading (gold, oil, agricultural commodities). The name stuck even as traders extended it to forex, stocks, crypto, and indices. The formula works on any asset class — name is historical, not functional.
What's the difference between +100 and +200 readings?
+100 = statistically 'overbought' but normal in trends. +200 = extreme rare reading often near reversal. Most uptrends produce CCI readings 100-150 during normal continuation. Readings above 200 indicate parabolic moves that frequently exhaust.
Can CCI be negative without limit?
Theoretically yes, but practically rare. CCI below -300 occurs less than 1% of the time on liquid assets. Such extreme readings often indicate near-bottom conditions, but timing is critical — extreme oversold can stay extreme for many candles in true crashes.
Should I use 20-period CCI or shorter?
Default 20 works well. For 1m scalping, some use 10-14 for faster signals. For 1h-daily charts, 20 produces smoother signals. Standard 20 is the historical default and works across most timeframes.
How does CCI work on cryptocurrency?
Well. BTC/ETH have extended trends with frequent CCI extreme readings. CCI > +200 at $65k resistance has been a reliable PUT signal historically on BTC; CCI < -200 at major support has been reliable CALL setup. Combine with horizontal S/R for best results.
Is CCI useful in ranging markets?
Yes — CCI extremes work very cleanly in ranging conditions. Price at upper range + CCI > +100 = strong PUT signal. Price at lower range + CCI < -100 = strong CALL signal. Range-trading + CCI extremes is one of the highest-probability binary options setups.
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