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

Enter Foreign Exchange Market After Having Proper Guidance and Knowledge
Published by Cris Warn on June 11th 2012 | Investing
Forex trading systems can help you to learn a lot regarding the methods and rules. You have to learn...
Bradley Associates Media: Marchés émergents” Décennie De Perturbation
Published by Bradley Info Madrid on December 25th 2011 | Investing
Au cours de la dernière décennie, les marchés émergents sont devenus le principal moteur de la c...
Gather immediate online trading account earnings
Published by Alvin Cook on April 11th 2012 | Investing
Trading business highly popular scheme to gather millions everyday has became ultimate mode of occup...
Credit Card, Prepaid Card by Credocard Ltd
Published by Anni on January 11th 2012 | Investing
The cards with due advance credit are prepaid cards. The revolutionary cards have changed out paymen...
A Forex Affiliates Program Enjoys an Edge over Other Schemes
Published by Carrie Dorsey on July 28th 2012 | Investing
Taking part in a forex affiliates program can be an excellent means to receive a passive income on t...
Buy Automated Trading and Get the Most of Trading Opportunities
Published by Gecko Software on December 2nd 2011 | Investing
The Forex, stocks, and futures trading made many people wealthy. In fact, each of those markets has ...
Need to verify the profile of natural gas company before taking investment decision
Published by Maxleon on July 25th 2012 | Investing
One specific USA based independent oil and natural gas company deserves mention in this regard becau...
Mutual Funds the heavenly financial instruments
Published by Advisor India on July 26th 2012 | Investing
The open-ended schemes allow the investor to invest on the mutual funds at any time of the year. The...
Take tax help from tax consultants before paying your taxes
Published by Robert William on January 12th 2012 | Investing
Paying taxes is our duty but there are certain rebates and returns that you are eligible to receive;...
Arrange for Your Own Pension with an Annuity Policy
Published by Robertcook on April 6th 2012 | Investing
To spend your retired life peacefully and without any worries for financial issues, make sure you pl...
Are you a New Investor? Read This Before Opening Demat Account
Published by Sarika Sheth on February 14th 2012 | Investing
Opening the first demat account is a significant milestone for all new investors. There are numerous...
Dependable Online Stock Trading
Published by Robwillmas on January 9th 2012 | Investing
Online stock trading has become a popular way of investing in the stock market in turbulent times li...
Credit Syndication and Debt Capital Market Advisory Services by Money Matters
Published by Sam Jabba on January 5th 2012 | Investing
Money Matters Financial Services LTD is a financial service provider that enjoys a good repute and o...
Houston Accident Attorneys - the Coaching the Reason is the Second Fastest Growing Industry in the World
Published by Billy Tran on June 12th 2012 | Investing
Houston accident attorneys there are several career options today that can be said to be completely ...
Strengthen Your Market Position with Invoice Discounting
Published by Lee Simons on April 19th 2012 | Investing
Working with an expert advisor, invoice discounting facilities are the ideal solution for larger bus...
Build your career as successful binary options trader
Published by Alvin Cook on March 21st 2012 | Investing
As you are planning to start your career as binary trader you have to put lot of effort in finding t...
Financial Brokerage Market in India 2012
Published by Bharatbook on June 9th 2012 | Investing
Bharatbook added a new report on "Financial Brokerage Market in India 2012" which gives an overview,...
Check for These Tips While Investing in Iraqi Dinars
Published by Robert Cruz on April 4th 2012 | Investing
When you are making investments for 25000 Iraqi dinars or 1,000,000 Iraqi dinars, you must be carefu...
CC Holdings: Wise and Effective Wealth Protection
Published by Nymphjohn on June 29th 2012 | Investing
Offshore company provides many benefits which include protection from political and currency risk....
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...