Welcome back to Trader’s War Room! Today we’re spotlighting the Commodity Channel Index (CCI)—a powerful indicator that helps identify momentum shifts, spot reversals, and find trading opportunities across stocks, ETFs, and forex.

Developed in the 1980s, the CCI measures how far a price has moved from its average. Readings above +100 may signal overbought conditions, while below -100 can suggest an asset is oversold and primed for a bounce.

Expert trader Wendy Kirkland uses CCI to uncover hidden trends and lock in profits. Learn her Secret for Retirement Income Growth—click here!

Using CCI Like a Pro

  • Overbought (+100+): Watch for potential pullbacks.
  • Oversold (-100-): Look for bullish reversal setups.
  • Divergences: Spot early trend changes.
  • Sideways Markets: Use CCI to find tops/bottoms others miss.

Pair CCI with other indicators to confirm trends and avoid false signals. Remember, in highly trending markets, the CCI can give false alerts, so adjusting its settings or combining it with tools like moving averages helps tailor it to your style and market conditions.

Stay tuned for more tips at Trader’s War Room and visit Tradewins Daily for expert trading resources.

Happy Trading!