what is cci index in forex market

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Introduction
The Commodity Channel Index (CCI) measures the current price level relative to an average price level over a given period of time. CCI is relatively high when prices are far above their average. ... Using this method, CCI can be used to identify overbought and oversold levels



Explained cci

Dear forex member CCi bunyadi tor par naye rujhanaat ko dekhnay, ziyada kharidi hui aur ziyada farokht honay wali sthon ko dekhnay, aur jab isharay qeemat ke sath mukhtalif hotay hain to rujhanaat mein kamzoree ko dekhnay ke liye istemaal kya jata hai. Jab cci manfi ya sifar ke qareeb ilaqay se a hundred se oopar ki taraf jata hai, to yeh is baat ki nishandahi kar sakta hai ke qeemat aik naya oopri rujhan shuru kar rahi hai. Aik baar aisa honay ke baad, tajir qeemat mein wapsi ke liye dekh satke hain jis ke baad qeemat aur cci dono mein taizi aati hai taakay kharidari ka mauqa miley



Important points
Dear forex member Commodity Channel Index ( CCi ) aik takneeki isharay hai jo mojooda qeemat aur tareekhi ost qeemat ke darmiyan farq ko degree hai. Jab CCi sifar se oopar hai, to yeh batata hai ke qeemat tareekhi ost se ziyada hai. Is ke bar aks, jab cci sifar se neechay hota hai, qeemat tareekhi ost se kam hoti hai. Si si aayi aik laa-mehdood oscillator hai, yani yeh ghair muayana muddat tak oopar ya neechay ja sakta hai. Is wajah se, ziyada kharidi gayi aur ziyada farokht ki sthon ka taayun aam tor par har infiradi asasa ke liye tareekhi intehai cci sthon ko dekh kar kya jata hai jahan se qeemat tabdeel hoti hai .

How to trading this pattern
A basic CCI strategy is used to track the CCI for movement above +100, which generates buy signals, and movements below -100, which generates sell or short trade signals. 6 Investors may only want to take the buy signals, exit when the sell signals occur, and then re-invest when the buy signal occurs again.

CCI (Commodity Channel Index) index forex market mein ek mashhoor technical indicator hai. Yeh indicator price movements ko analyze karne ke liye istemal hota hai aur traders ko trading decisions lene mein madad deta hai. CCI index mein kisi bhi time ke dauran price ki volatility aur trend ko samajhne ke liye ek formula istemal kiya jata hai. CCI index ko Donald Lambert ne 1980 mein develop kiya tha. Is indicator ka istemal initially commodity markets ke liye kiya jata tha, lekin baad mein iska istemal stock market aur forex market mein bhi shuru ho gaya. CCI index ka main objective hai price ke fluctuations ko samajhna aur overbought aur oversold levels ko identify karna. Isse traders ko potential buy aur sell signals milte hain. CCI index ka calculation price ke average, average deviation aur constant factor par based hota hai. Iske calculation mein kuch steps follow kiye jate hain. Pehle step mein, ek time period select kiya jata hai, jisme price movements analyze kiye jayenge. Normal trading mein commonly 20-day period ya 14-day period istemal kiya jata hai. CCI index ka calculation formula is tarah hota hai: CCI = (Typical Price - 20-day SMA of Typical Price) / (0.015 * Mean Deviation) Yahan Typical Price price high aur low ka average hota hai. 20-day SMA of Typical Price 20-day Simple Moving Average hota hai, jisme Typical Price ke 20-day ka average calculate kiya jata hai. Mean Deviation price aur 20-day SMA ke deviation ka average hota hai. CCI index ke values positive aur negative dono ho sakti hain. Positive values overbought conditions ko indicate karte hain jab price bahut tezi se badh rahi hoti hai. Negative values oversold conditions ko indicate karte hain jab price bahut tezi se ghat rahi hoti hai. CCI index ka use trend reversal points aur extreme levels ko identify karne ke liye kiya jata hai. Jab CCI index overbought level se neeche aata hai aur negative territory mein enter karta hai, to yeh ek sell signal provide karta hai. Aur jab CCI index oversold level se upar jata hai aur positive territory mein enter karta hai, to yeh ek buy signal provide karta hai. CCI index ke saath kuch common trading strategies bhi istemal kiye jate hain. Kuch traders sirf overbought aur oversold levels par trading karte hain. Jab CCI index overbought level par hota hai, to woh sell order place karte hain, aur jab CCI index oversold level par hota hai, to woh buy order place karte hain. Lekin sirf overbought aur oversold levels par depend karna risk wala decision ho sakta hai, isliye trend aur market context ko bhi consider karna zaroori hota hai. CCI index ke saath divergence bhi observe ki jati hai. Divergence tab hoti hai jab price aur CCI index ke movements opposite directions mein hote hain. Agar price higher high bana raha hai lekin CCI index lower high bana raha hai, to yeh bearish divergence ho sakti hai, jo trend reversal ke liye indicate karti hai. Upar se ghatne wali price ke saath CCI index higher low bana raha hai, to yeh bullish divergence ho sakti hai, jo trend reversal ke liye indicate karti hai. CCI index ek versatile indicator hai, lekin iski bhi limitations hain. Iska istemal sideways markets mein kam kar sakta hai aur trending markets mein false signals bhi generate kar sakta hai. Isliye, dusre technical indicators aur price action analysis ke saath CCI index ko confirm karne ki zaroorat hoti hai.

CCI (Commodity Channel Index) forex mein ek popular technical indicator hai, jo price volatility aur trend reversals ko measure karne ke liye istemal hota hai. CCI oscillator ki tarah kaam karta hai aur traders ko overbought aur oversold conditions ke signals deta hai. CCI Indicator ka calculation price movements ke basis par hota hai. Ye price ki average, standard deviation, aur constant factor ka istemal karke calculate kiya jata hai. CCI positive aur negative values generate karta hai, jo momentum aur trend reversals ko indicate karte hain. CCI Indicator ka istemal primarily do tarah se hota hai: 1. Overbought/Oversold Conditions: CCI Indicator overbought aur oversold levels ko identify karne mein madad karta hai. Overbought condition tab hoti hai jab CCI positive territory se bahar jata hai, aur oversold condition tab hoti hai jab CCI negative territory se bahar jata hai. Overbought aur oversold levels traders ko potential trend reversals aur price corrections ka indication dete hain. 2. Divergence: CCI Indicator divergence patterns ko bhi detect kar sakta hai. Divergence tab hoti hai jab price aur CCI Indicator ke readings opposite directions mein move karte hain. Positive divergence bullish trend reversals ko indicate karti hai, jabki negative divergence bearish trend reversals ko indicate karti hai. Divergence patterns traders ko price momentum aur trend reversals ke signals dete hain. CCI Indicator ke benefits ya advantages niche diye gaye hain: 1. Volatility Measurement: CCI Indicator price volatility ko measure karne mein madad karta hai. Jyada CCI values high volatility ko indicate karte hain, jabki kam CCI values low volatility ko indicate karte hain. Volatility ki samajh traders ko market conditions aur potential trading opportunities ke liye help karta hai. 2. Overbought/Oversold Signals: CCI Indicator overbought aur oversold levels ko identify karke traders ko trading signals deta hai. Overbought conditions mein sell signals generate hote hain, jabki oversold conditions mein buy signals generate hote hain. 3. Trend Reversal Signals: CCI Indicator trend reversals ko detect karne mein madad karta hai. Positive aur negative divergence patterns traders ko potential trend reversals ka indication dete hain, jisse traders price reversals par trading opportunities explore kar sakte hain. 4. Flexible Timeframes: CCI Indicator multiple timeframes par effectively kaam karta hai. Isse traders apne trading preferences aur timeframes ke hisab se CCI Indicator ka istemal kar sakte hain. Conclusion: CCI (Commodity Channel Index) forex mein ek popular technical indicator hai, jo price volatility aur trend reversals ko measure karta hai. CCI Indicator ke readings overbought, oversold, aur divergence patterns traders ko potential trading signals dete hain. Is indicator ka istemal karne se pehle traders ko iski settings aur interpretation ko samajhna chahiye. CCI Indicator ek tool hai aur iski efficacy aur accuracy traders ke analysis, risk management, aur trading strategies par depend karti hai.