Investment analyst Donald Lambert is generally regarded as the developer of the Commodity Channel Index tool in the late 1970. It has been used successfully by many traders and brokers within different financial market including binary options. This investment analysis tool can be used as an indicator for trending condition and can also help traders spot an opportunity that is worth trading based on the identified market trend.
CCI (Commodity Channel index) is a tool that can be deployed to identify trends across a broad range of market. This type of indicator is also known as oscillator because of the fact that it measures that difference in a security asset price from the moving average.
The commodity Channel index tends to be unusually high in situations where an asset price surpasses it average value considerably. The opposite is also true and it will be fairly low in situations where an asset price is way below their average value. The Commodity Channel Index is most useful in spotting assets that look to be in an overbuying or overselling position. The CCI can also be helpful in identifying the valleys and hills in the actual value of an asset and signifying
Read more ... source: NewsBTC USA
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