CCI Divergence



CCI Interpretation:

The CCI divergence indicator detects bullish and bearish divergence between price and CCI. The divergence indicate a slowdown of the current trend and a probability of a reversal.

If a bullish divergence is detected this indicator returns +1 (green histogram). If a bearish divergence is detected, this indicator return -1 (red histogram). If no divergence is detected, the indicator returns 0.

Tip:

If you are looking at a price chart, a CCI chart and a CCI divergence chart, make sure that you have set the parameters of the CCI and the CCI divergence to the same levels.

CCI Calculations:

A bullish divergence occurs when the price makes new lows while the indicator starts to climb upward.

A bearish divergence occurs when the price makes new highs while the indicator starts to go lower.


Return from CCI divergence to Using Idicators

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