CCI above +100 suggests:

Strength. It shows price well above its average.

Unbounded. It can exceed the usual levels.

It is best combined with:

Trend and levels. Context improves signals.

Commodity Channel Index (CCI)

Measures how far price is from its average, in units of mean deviation.

CCI compares the typical price (high, low and close averaged) with its moving average, scaled by mean deviation. Readings above +100 show strength and below -100 weakness.

Traders use it for overbought and oversold zones, for trend entries when CCI crosses back above -100 in an uptrend, and for divergence.

Because it is unbounded, extreme readings can last. Combine with trend and levels.

Key takeaways

Distance from the average, scaled by deviation
+100 and -100 are common reference levels
Unbounded, extremes can persist

Quiz

CCI above +100 suggests: Answer: Strength. It shows price well above its average.
CCI is: Answer: Unbounded. It can exceed the usual levels.
It is best combined with: Answer: Trend and levels. Context improves signals.

Educational content, not financial advice.