Quotex Trading Strategy Guaranteed Profit With the CCI Indicator

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How to make profit with CCI indicator on QuotexThe CCI indicator stands for Commodity Channel Index and is an oscillating indicator for traders of all markets, not just for commodities, as the name suggests. With CCI you can measure the current price of an asset about its average price in a certain time interval. It is used to predict trend reversals for long trades or to spot divergences or whether the market is oversold or overbought. How to attach the CCI indicator to the chart on Quotex

Two steps to attaching CCI to a chart Usually, you have to sign in first. Then you select the indicator icon (1). Look for CCI(2) and click on it. You will see the indicator below the price chart. It will take the form of a green line and will oscillate between -200 and 200.

Changing the CCI period from the default 20 to 14 You can change the CCI period. To do that simply click on the pen icon located in the upper right corner of the indicator window. You will notice that the left settings sidebar will appear. There, you can change the period, width, and color of the CCI line. We recommend changing the period from the default 20 to 14. That will make the CCI line react faster in response to price behavior. Don't go too low, because you can get too many false signals. The Commodity Channel Index typically ranges between -200 and 200. However, it can go beyond these extremes. If it breaks through 200, it will be a sign of an overbought market. The price will start to fall soon. If it crosses -200, it means the market is oversold, so the price will go up.

CCI direction with overbought and oversold areas The first CCI trading method is to observe the oversold and overbought areas. You know the market is overbought when the green line exceeds 100. When the CCI line crosses the CCI direction with overbought and oversold areas The first CCI trading method is to observe the oversold and overbought areas. You know the market is overbought when the green line exceeds 100. When the CCI line crosses the 100 line on its way down, it's definitely time to sell in the opposite situation, it means when the CCI indicator exceeds -100 so the market is oversold, when you see the green line crossing -100 on its way up, you enter a long position.in the opposite situation, it means when the CCI indicator exceeds -100 so the market is oversold, when you see the green line crossing -100 on its way up, you enter a long position.

Divergences are useful for catching changes in price direction. Another method of using the CCI indicator is to pay attention to divergences. In the chart above, you can see, that the price is moving in one direction, and the Commodity Channel Index in the opposite direction. It is a divergence that tells you that the trend is bound to change. The oscillating Commodity Channel Index indicator is a comprehensive tool used in technical analysis. And it can improve your trading results on Quotex But first, try it on a practice account. If you haven't joined yet, please register here