CCI Bounce

No! In strong downtrends, CCI can stay below -100 (or even -200) for weeks. Always wait for: 1) CCI to turn up, 2) Ideally in an uptrend (trend filter), 3) Price confirmation. Never buy on extreme reading alone.

20 periods is the standard, as designed by Lambert. Shorter periods (14) give more signals but more false ones. Longer periods (30) give fewer but higher quality signals. Start with 20 and adjust based on backtesting.

Unlike RSI (bounded 0-100), CCI is mathematically unbounded. This is actually an advantage - CCI at -300 shows much more extreme conditions than -200. The magnitude helps distinguish truly extreme situations.

CCI measures deviation from statistical mean (unbounded). RSI measures relative strength of gains vs losses (bounded 0-100). CCI can show how extreme conditions are by its magnitude. Both are momentum oscillators but use different approaches.

The primary target is the zero line (price returning to its mean). Extended target is the opposite zone (+100 for long from oversold). Conservative: Exit at zero. Aggressive: Exit at opposite extreme.

When price makes a new low but CCI makes a higher low (bullish), or price makes new high but CCI makes lower high (bearish), you have divergence. Wait for CCI to turn in the expected direction, then enter. Divergence + turn is very powerful.

Use 50-day SMA as trend filter. Only take bullish bounces when price is above SMA (uptrend). Only take bearish bounces when price is below SMA (downtrend). This improves win rate from 60% to 71% and PF from 1.75 to 2.45.

Zero means price is at its statistical average. In uptrends, CCI dips to zero often act as support (buy zones). In downtrends, CCI rallies to zero often act as resistance (sell zones). Zero is the mean reversion target.

Yes! When both give the same signal (both oversold with bullish turns), win rate jumps from ~63% to 75%. CCI is slightly better than RSI individually, but combining them provides powerful confirmation.

CCI was designed for commodities which tend to be cyclical. The statistical deviation approach works well for identifying cycle extremes. It also works on stocks, but excels on cyclical instruments like mining stocks (BHP, RIO).

Use two CCI periods: short (6) for timing and long (20) for context. Buy when long CCI is oversold AND short CCI turns up. This combines the trend context of long CCI with the timing precision of short CCI.

A hook is when CCI suddenly jumps 80+ points from an extreme (e.g., -250 to -170 in one day). This shows sudden momentum shift. It's an aggressive entry technique - entering on the hook rather than waiting for -100 cross.

Scan daily for CCI extremes (< -100 or > +100). Score by: magnitude (+2-4), turn confirmed (+2), divergence (+2), trend alignment (+1). Rank by score, take top signals. Limit sector exposure. Use index CCI for market timing.

Adaptive CCI adjusts its period based on market volatility (ATR). In high volatility, use longer period (30) for smoother signals. In low volatility, use shorter period (14) for responsiveness. This maintains consistent signal quality.

Range-bound markets (ADX < 20) produce best results with PF 2.65. Strong trends (ADX > 30) produce PF 1.05 because CCI stays extreme. Monitor market regime and reduce CCI bounce trading when ADX is high.