CCI
How far price sits from its typical average. Extreme readings mark stretch for mean reversion.
About
The Commodity Channel Index (CCI) measures how far typical price sits from its average. It oscillates around zero. Readings above +100 are commonly stretched high. Readings below -100 are commonly stretched low.
A return from below -100 toward zero is a typical mean-reversion long cue. A return from above +100 is the short-side cue. CCI can stay extreme while a trend runs, so the first cross of +100 or -100 is not always an exit.
Add CCI to a mix as a stretch filter next to a moving average or band, so the entry needs both an extreme reading and a price trigger.
Mixes using CCI
Waste CCI FilterWM1 day
CCI crossing above zero while close holds the slow SMA. Exit when CCI crosses back below zero.
CCI Zero LineAAPL1 day
Enter when CCI crosses above zero; exit when CCI crosses below zero.
CCI Trend CrossNVDA1 day
Enter when CCI breaks into a strong up-thrust; exit when CCI turns negative.