Commodity channel index points at price deviation from its average. When the figures are too high – the price is too high, once the low – is too low. This indicator’s deviations are normally happening in the +100 range. When the market is in the +100 range, the market is sold out and deceleration is possible, when the range is -100 – opposite.
As well the indicator is used to search for deviations that are appearing once the price is reaching it’s new maximum and the indicator is not higher than the previous. As a result of such deviation further rates correction is to be expected.
