Learn Forex Trading "CPI" in Forex Trading|How to Trade Commodity Channel Index (CCI) in Forex
Learn Forex Trading "CPI" in Forex Trading|How to Trade Commodity Channel Index (CCI) in Forex
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What is the Commodity Channel Index (CCI)?
Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to assess price trend direction and strength. This information allows traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.
The CCI measures the difference between the current price and the historical average price.
When the CCI is above zero it indicates the price is above the historic average. When CCI is below zero, the price is below the hsitoric average.
High readings of 100 or above, for example, indicate the price is well above the historic average and the trend has been strong to the upside.
Low readings below -100, for example, indicate the price is well below the historic average and the trend has been strong to the downside.
Going from negative or near-zero readings to +100 can be used as a signal to watch for an emerging uptrend.
Going from positive or near-zero readings to -100 may indicate an emerging downtrend.
CCI is an unbounded indicator meaning it can go higher or lower indefinitely. For this reason, overbought and oversold levels are typically determined for each individual asset by looking at historical extreme CCI levels where the price reversed from
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The Consumer Price Index (CPI) is a broad measure of inflation within an economy in relation to the cost of goods and services. That figure can have a significant impact on the value of a currency in relation to the currencies of other nations.
The CPI calculates the weighted average of prices of a basket of consumer goods and services, including costs of transportation, food, and energy. Economists use this CPI figure to assess price changes in individuals’ cost of living.
When inflation is too low, a central bank like the Federal Reserve may cut interest rates in order to spur economic activity. When inflation is too high, interest rates may be raised to stabilize prices. By increasing interest rates, a consumer may be more likely inclined to save money, rather than spend it, due to the return they may generate by keeping it in a bank.
In the foreign exchange (forex) markets, the monthly CPI measure is one of the most important indicators monitored by traders. In the case of the U.S. dollar, the release and revisions of the CPI figure by the Bureau of Labor Statistics can produce swings in the dollar’s value against other currencies around the world.
This article explains how CPI data affects the relationship between the dollar and its pairings with other currencies on the forex market.
Why the CPI Matters to Currency Traders
Markets typically refer to the CPI indicator as “headline inflation.” This CPI data is critical in the currency markets because inflation dramatically impacts the decisions made by central banks regarding monetary policy.
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Welcome Friends to 's Biggest Technical Analysis Youtube Channel
Our Dream is to make you an Expert in Trading any Market, be it Indian Stocks, Commodity or Forex Trading. We plan to achieve that by:
* By providing you A-Z of Technical Analysis and Fundamental Analysis training,
* By Giving you tools, Strategies and Indicators to know the markets better,
* By Providing you a Demo trading platform free of cost to test the waters
* By Providing you a Mobile App, to Monitor, Study, Analyze and trade on the Go.
* By Providing you Free Honest Product reviews related to Trading.
Our Channel has Videos basic videos from what is Technical Analysis to advanced concepts like Trading Divergences, we have training videos in Trading Psychology, Money Management along with hardcore Technical Analysis videos.
Wishing you all the very best.
.....................................................
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What is the Commodity Channel Index (CCI)?
Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to assess price trend direction and strength. This information allows traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.
The CCI measures the difference between the current price and the historical average price.
When the CCI is above zero it indicates the price is above the historic average. When CCI is below zero, the price is below the hsitoric average.
High readings of 100 or above, for example, indicate the price is well above the historic average and the trend has been strong to the upside.
Low readings below -100, for example, indicate the price is well below the historic average and the trend has been strong to the downside.
Going from negative or near-zero readings to +100 can be used as a signal to watch for an emerging uptrend.
Going from positive or near-zero readings to -100 may indicate an emerging downtrend.
CCI is an unbounded indicator meaning it can go higher or lower indefinitely. For this reason, overbought and oversold levels are typically determined for each individual asset by looking at historical extreme CCI levels where the price reversed from
=================================================
The Consumer Price Index (CPI) is a broad measure of inflation within an economy in relation to the cost of goods and services. That figure can have a significant impact on the value of a currency in relation to the currencies of other nations.
The CPI calculates the weighted average of prices of a basket of consumer goods and services, including costs of transportation, food, and energy. Economists use this CPI figure to assess price changes in individuals’ cost of living.
When inflation is too low, a central bank like the Federal Reserve may cut interest rates in order to spur economic activity. When inflation is too high, interest rates may be raised to stabilize prices. By increasing interest rates, a consumer may be more likely inclined to save money, rather than spend it, due to the return they may generate by keeping it in a bank.
In the foreign exchange (forex) markets, the monthly CPI measure is one of the most important indicators monitored by traders. In the case of the U.S. dollar, the release and revisions of the CPI figure by the Bureau of Labor Statistics can produce swings in the dollar’s value against other currencies around the world.
This article explains how CPI data affects the relationship between the dollar and its pairings with other currencies on the forex market.
Why the CPI Matters to Currency Traders
Markets typically refer to the CPI indicator as “headline inflation.” This CPI data is critical in the currency markets because inflation dramatically impacts the decisions made by central banks regarding monetary policy.
\\\\\\\\\\\\\\\\\\\\\\\\\\
Welcome Friends to 's Biggest Technical Analysis Youtube Channel
Our Dream is to make you an Expert in Trading any Market, be it Indian Stocks, Commodity or Forex Trading. We plan to achieve that by:
* By providing you A-Z of Technical Analysis and Fundamental Analysis training,
* By Giving you tools, Strategies and Indicators to know the markets better,
* By Providing you a Demo trading platform free of cost to test the waters
* By Providing you a Mobile App, to Monitor, Study, Analyze and trade on the Go.
* By Providing you Free Honest Product reviews related to Trading.
Our Channel has Videos basic videos from what is Technical Analysis to advanced concepts like Trading Divergences, we have training videos in Trading Psychology, Money Management along with hardcore Technical Analysis videos.
Wishing you all the very best.
.....................................................
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best forex trading platform
forex trading for beginners
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what is forex trading and how does it work
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orex trading in india
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functions of foreign exchange market
what is forex trading and how does it work
