Commodity Channel Index (CCI) is a versatile indicator that can be used to identify a new trend or warn of extreme conditions. In general, 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. CCI is relatively low when prices are far below their average. In this manner, CCI can be used to identify overbought and oversold levels.
CCI crossed above 0, indicating a change in trend and a potential long trade
We can confirm this with The Bollinger Bands Indicator.
Price is penetrating below Lower Band and closing above it. This signals a failed breakout and a potential reversal, seting up a long trade.
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