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how to give simple ranking to stocks witch is trending higher & witch is trending lower
for simple ranking you can use CCI indicator
for identified top strong & top weak stocks.
@Trendmyfriends
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how to give simple ranking to stocks witch is trending higher & witch is trending lower
for simple ranking you can use CCI indicator
for identified top strong & top weak stocks.
@Trendmyfriends
1⃣
CCI Developed by Donald Lambert
⚡️The Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine a price trend direction and strength of stocks
⚡️CCI measures the difference between the current price and the historical average price.
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⚡️The Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine a price trend direction and strength of stocks
⚡️CCI measures the difference between the current price and the historical average price.
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⚡️The Formula for the CCI
CCI= (Typical Price−MA) /( 0.015×Mean Deviation)
how we use it
⚡️When the CCI is above zero, it indicates the price is above the historic average. Conversely, when the CCI is below zero, the price is below the historic average.
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CCI= (Typical Price−MA) /( 0.015×Mean Deviation)
how we use it
⚡️When the CCI is above zero, it indicates the price is above the historic average. Conversely, when the CCI is below zero, the price is below the historic average.
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see example chart of nifty
when CCI start decreasing , overall trend in nifty is changed from positive to negative
and when CCI start increasing overall trend in nifty is changed from negative to positive
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when CCI start decreasing , overall trend in nifty is changed from positive to negative
and when CCI start increasing overall trend in nifty is changed from negative to positive
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⚡️What Does CCI Tell You?
The CCI is primarily used for spotting new trends, watching for overbought and oversold levels,
and spotting weakness in trends when the indicator diverges with price.
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The CCI is primarily used for spotting new trends, watching for overbought and oversold levels,
and spotting weakness in trends when the indicator diverges with price.
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⚡️When the CCI moves from negative or near-zero territory to above 100, that may indicate the price is starting a new uptrend.
Once this occurs, traders can watch for a pullback in price followed by a rally in both price and the CCI to signal a buying opportunity.
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Once this occurs, traders can watch for a pullback in price followed by a rally in both price and the CCI to signal a buying opportunity.
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⚡️Note: CCI is an unbound oscillator, there is no upside or downside limits.
This makes interpreting an overbought or oversold condition subjective.
When CCI is overbought the stock can continue to move higher. When the CCI is oversold the stock can continue lower as well.
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This makes interpreting an overbought or oversold condition subjective.
When CCI is overbought the stock can continue to move higher. When the CCI is oversold the stock can continue lower as well.
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⚡️now a question is how to rank all stocks for identified trending up & trending down stock
in CCI overbought & oversold is unbound zone so we can assume above +100 is trending positive and below -100 is trending negative
like this my 14 Jan 2022 ranking
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in CCI overbought & oversold is unbound zone so we can assume above +100 is trending positive and below -100 is trending negative
like this my 14 Jan 2022 ranking
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⚡️in a ocean of more then 5000 stocks we need to limit our area of playing, so CCI is a good way to shortlist stocks for trading.
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@SouravSenguptaI
@AdityaTodmal
@AnandableAnand
@niki_poojary
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@SouravSenguptaI
@AdityaTodmal
@AnandableAnand
@niki_poojary
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