CCI Bounce

Donald Lambert developed it in 1980 primarily for commodity trading to identify cyclical patterns. However, it works equally well on stocks, forex, and indices. The name stuck even though it's universally applicable.

CCI is unbounded - it measures how many 'mean deviations' price is from average. Unlike RSI (bounded 0-100), CCI can theoretically reach any value. Values beyond ±100 are statistically unusual, making extremes like -300 particularly significant.

CCI -100 means price is moderately below average (about 1 mean deviation). CCI -200 means price is very far below average (about 2 mean deviations). -200 is more extreme and has higher probability of bounce.

Yes, but use shorter timeframes (1-hour, 15-minute) and expect more noise. The same principles apply: trade bounces from extreme zones. Consider using a shorter period (10-14) for intraday.

Yes, CCI bounce trading works in TFSA accounts. The typical holding period of 3-10 days is appropriate. Just manage position sizes and frequency to avoid excessive trading.

1) Only trade deep oversold (below -150), 2) Wait for CCI to cross back above -100, 3) Require candle confirmation, 4) Use trend filter (above 50 MA), 5) Check weekly CCI alignment.

Conservative: exit at CCI zero. Aggressive: exit at CCI +100. Scaled: 50% at zero, 50% at +100 or reversal. The zero line is consistent; +100 captures more but may give back profit.

Identify divergence (price lower low, CCI higher low), then wait for CCI to cross above -100 as confirmation. Don't trade divergence alone - many persist. Entry on cross, stop below divergence low.

Yes, CCI works better with confirmation: trend filter (MA), RSI, Bollinger Bands. Confluence improves probability. CCI alone gives false signals in strong trends.

Well-designed CCI bounce systems achieve 45-55% win rates. The edge comes from sizing up on extreme readings and proper risk management. Profit factor should exceed 1.3.

Scan for: CCI crossed above -100 in last 2 bars, was below -150 recently, price above 50 MA, bullish candle present. Rank by CCI depth (lower = better), divergence, and weekly alignment.

High volatility: use ±150 thresholds instead of ±100. Low volatility: use ±80. You can also use longer period (30) in high volatility to smooth signals.

Use 20-period CCI for trend (oversold context) and 6-period CCI for timing (crossover entry). Buy when 20-period is below -100 and 6-period crosses up. Provides context with precise timing.

More extreme CCI = higher probability = larger position. Below -200: 100% of calculated position. -150 to -200: 80%. -100 to -150: 60%. This allocates more capital to better setups.

Exit efficiency = (Exit Price - Entry) / (Best Available Exit - Entry). Track the best price reached after entry. 50% efficiency means you captured half the potential move. Review exits if consistently below 40%.