CCI Technical Analysis Strategy Explanation, Analysis, & Backtest

When financial markets have low(er) volatility, traders are often best served looking for indicators that fade breakouts or that bet on reversals. While no strategy works all the time, traders should become familiar with the Commodity Channel Index (CCI) that measures deviations from the moving average while showing overbought and oversold conditions for clear entries. There are multiple uses for the indicator, and DailyFX Sr. Analyst, Tyler Yell discusses a few and also shares with you the backtested results over the last year in major currencies and the SPX500 to help you understand the indicator better.

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