Commodity Channel Index

Discussion in 'Trading' started by larrybf, Jun 4, 2002.

  1. Aprofitable trader who I know uses the commodity channel index and claims that unlike other indicators, the CCI is a "leading indicator". I cannot find anything anywhere to support this claim. Can someone clear up this confusion for me?? thanks
  2. Magna

    Magna Administrator

  3. Isn't it just basically the relationship of the current price to an average price - over/undersold?
  4. thanks for the answers
  5. I've tried many ways of looking at and using CCI. I agree with your friend, it is a leading indicator. It leads one to making some very questionable trades. :)
  6. aura0663


    This is an indicator that I first became aware of in '99 thru the Pristine swing trade orientation for traders (seems like a lifetime away) that they used on a 5 day short term calculation. Combined with a positive/negative futures move, short term pullback/retracement against a rising/falling trend, hopefully to a moving average or an important level of S/R, and a number piercing +100 or -100 for a short / long this was purported to be a leading indicator and a low risk play. I still maintain the CCI on my daily chart and pay attention to it, however I consider it somewhat in the same realm as the rest of the indicators(Stoc,Macd,etc), which is simply a mathematical consideration to take into account. with the main focus on playing the market for whatever it gives you.