How to trade using the Commodity Channel Index i.e. CCI indicator?
The Commodity Channel Index (CCI) is a technical indicator that measures the difference between the current price and the historical average price. When the CCI is above zero, it indicates the price is above the historic average. Conversely, when the CCI is below zero, the price is below the historic average.
The CCI is an unbounded oscillator, meaning it can go higher or lower indefinitely. For this reason, overbought and oversold levels are typically determined for each individual asset by looking at historical extreme CCI levels where the price reversed from.
I use this free stocks screener on Bearish CCI Crossover: https://scanners.streak.tech/scanner/bearish-cci-crossover which helps in finding negative trend stocks. I found stocks like Wipro, and Bajaj Finance using my Zerodha Kite Login as it is free for Kite users and it turned out to be profitable for me.
Hi found this short and useful video on commodity channel breakout scanner. Do watch it when free:
You can also refer to this intraday equity scanner on Bullish CCI Crossover: https://scanners.streak.tech/scanner/bullish-cci-crossover to find stocks in uptrend, intraday stocks and stocks for short term investments. I found stocks like TATASTEEL, EICHERMOTORS, and SUNPHARMA which provided good returns in short term.