Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Use CCI Indicator to Trade the Currency Market with Confidence

By Ronald Lee Subscribe to RSS | December 19th 2011 | Views:

The foreign exchange or forex market permits traders to buy and sell currencies and make potential profits from small fluctuations in the rates of exchange. It is an extremely volatile market where money moves from one hand to another very rapidly. In order to make fully informed trading decisions, numerous currency traders count on free forex indicators that robotically analyze price charts and offer a mechanical interpretation of the price changes. The Commodity Channel Index or CCI belongs to the list of these technical indicators. There is no perfect indicator in trading that guarantees success. However, try to boost your experience by learning the fundamentals of the CCI indicator fast.

Use your foreign exchange charting software program and generate a price chart of any currency you seek. Then, implement the CCI indicator on that chart. You will notice a fresh sub-chart emerging underneath your price chart, comprising a solitary line that deviates over and below its zero line at the center as the currency prices deviate.

Try to detect the 100 and -100 levels on the Commodity Channel Index chart. These are located at equal distances from the middle zero line, over and beneath it. A large number of traders find these levels very important in the CCI chart. If your charting program is equipped with a drawing tool, you can clearly mark these levels at the time of your learning so as to make them more apparent.

Buy into the FX market when the CCI, which is one of the best free forex indicators, gets over the 100 level. Though this is simply one fundamental interpretation of this indicator, it can assist you in comprehending how it responds to price alterations. The general idea is that the CCI is noticing a potent positive trend when it shows a response in this manner. The trade might continue to be favorable as long as the CCI stays more than 100. Subsequently, close the position if it comes down to 100.

Traders can sell short into the currency market if the CCI indicator falls below the -100 level. Selling short is a widespread plan of action in foreign exchange and needs that you sell currencies, securities or commodities that are not actually owned by you. Hence, this strategy allows you to make profit from a fall in forex prices. Here, the Commodity Channel Index depicts a potent negative trend. When it rises to the -100 again from underneath, it is the right time to exit the position.

Moving on, buy into the FX market if the index goes up through the -100 level from underside. This is an identical reading of the negative level. It indicates that a negative trend might be turning back. Therefore, this functions as a closing alert for short sellers as well as a buying alert if traders don’t presently have any open position.

Resort to selling short if the CCI comes down via the positive 100 level. This is just the opposite of the identical trade concept for the -100 level.

Ronald Lee - About Author:
Ronald Lee is an expert in a wide range of free forex indicators. His website offers valuable information on the Commodity Channel Index or CCI indicator. Visit the website to learn its benefits and the methods of interpreting it.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Investing Articles Subscribe to RSS

Top Stocks & ETF Strong Buy Options
Published by Creighton Stolarz on April 19th 2012 | Investing
This article is written as a brief introduction to stock market trading. Because the stock market is...
Retirement Planning Advice for Individual Retirement
Published by Havenifa on June 13th 2012 | Investing
If you want to make your retirement secure together with proper financial planning then do opt for H...
The Optimist's Guide to 2011
Published by Prince Damin on November 30th 2011 | Investing
The pessimists who dominate public discourse insist that we will soon reach a turning point and thin...
How to Save Money on Diapers
Published by Lenddo Article on August 16th 2012 | Investing
Your baby’s needs’ can be a budget killer. Your baby’s formula milk, baby bottles and diapers...
Fixed Annuities Guarantee You Financial Security
Published by Robertcook on March 1st 2012 | Investing
This article focuses on the advantages of the fixed annuities and lifetime annuity schemes. Before y...
Programs Included in Debt consolidation help
Published by James Blee on March 6th 2012 | Investing
Debt Consolidation help is the most common approach to dealing with debt. Too many people in debt us...
Learn and Discover Multiple Streams of Income
Published by Andrewhawkes on March 20th 2012 | Investing
There are many different ways to make money online. Several peoples today the attraction of internet...
Get advice of tax from consultants
Published by Robert William on February 13th 2012 | Investing
Laundry expenses are shown as allowance in tax calculation. There are consultants who will advice on...
Beginner Investors and Some Great Tips
Published by MKenneth King on November 28th 2011 | Investing
Investments in stocks and shares have traditionally been among the most rewarding methods of wealth ...
10 Good Reasons Why You Should Jump into Forex Trading
Published by on July 17th 2012 | Investing
Truth be told, people are earning huge amounts of money from Forex trading. In a nutshell, it posses...
Basics of currency trading program and why it is so popular
Published by Jemes Smith on June 12th 2012 | Investing
Trading in currency has become a well-liked way to earn money roughly the world. Depending on the in...
The Financial Benefits of Losing Weight
Published by Lenddo Article on August 16th 2012 | Investing
Losing weight does not only improve your figure, but it also improves your health in many ways. It d...
Forex Affiliate Forums Help in Voicing Reviews on Affiliate Programs
Published by Shannon Hill on February 16th 2012 | Investing
Forex affiliate program reviews are the services which are designed and formulated for the professio...
Bark & Co Solicitors London News: Mr Kweku Adoboli Granted Bail
Published by Bark Co Solicitors on June 14th 2012 | Investing
Mr Kweku Adoboli was granted bail after a successful bail application at Southwark Crown Court. Mr T...
Invest Sensibly for Securing Better Returns
Published by Robert Jhonson on March 12th 2012 | Investing
This article highlights on the financial schemes of tax deferred annuity that helps the retiree to s...
3 Things You Should Expect from Financial Services of Virginia
Published by Michael Colliano on May 28th 2012 | Investing
The good financial services of Virginia will have set protocols in place to keep you informed and ke...
Increased amount of Cross-Asset Forex currency trading Variations for many Quantiative Shelling out Personnel
Published by Charles Steveson on April 24th 2012 | Investing
The final word plan of one's purchasing and selling companie constantly to get, but nevertheless , i...
A Primer on Wheat Futures
Published by Jennifer More on June 26th 2012 | Investing
The supply and demand of agricultural commodities such as wheat depends on factors like temperature,...
Is Garmin the Perfect Stock?
Published by Prince Damin on December 24th 2011 | Investing
Everyone would love to find the perfect stock. But will you ever really find a stock that gives you ...
Seeking Businesses with Assistance from a Business Broker
Published by Matthew Engquist on June 1st 2012 | Investing
It's challenging to begin a company knowing that there are already a whole lot of companies providin...
Opt for Currency Options with the Help of Forex Trading Signals
Published by Kelly Wagenheim on August 24th 2012 | Investing
Currency options give the right to contract holder, to buy (that is call option) or to sell (also kn...
Know how to stay updated with natural gas news on a regular basis
Published by Kevinpieter on August 22nd 2012 | Investing
Before taking investment decision, it is very important to know about the specific company profile. ...
Natural gas investments offer unique opportunity to earn lucrative returns over a period
Published by Mano Matthew on August 22nd 2012 | Investing
Natural gas prices have gone through quite a topsy-turvy phase. Since hitting the peak phase during ...
Singapore Company Registration: a Part of Starting New Business
Published by Andrews Thomas on August 22nd 2012 | Investing
Though Singapore company registration is one of the things, which a business entrepreneur needs to d...
Getting Idea of Fixed Income Products
Published by Fixedincome on August 20th 2012 | Investing
People get perplexed about the investment policies available in the market. They must have idea of t...
A great Agency for that Consolidation Associated with Debt That's Non Revenue
Published by Shyam Singh on August 18th 2012 | Investing
When you obtain a debt administration program via DMCC you'll be assigned an avowed Credit Counselor...