Category: Money tips Release Date: 2007-07-12
I. Introduction:
This indicator has been devoted to measuring the price is beyond the scope of the normal distribution belong to categories of indicators overbought oversold the more specific kind of fluctuations in the positive and negative infinity between the infinitely small, but not have to be 0 for the central axis, which is and volatility is also on the positive and negative infinity infinitesimal different indicators.
The so-called overbought oversold indicators, by definition, "overbought" is beyond the ability of buyers to buy the stock more than a certain percentage, then, that we should sell the stock back. "Oversold" is selling on behalf of the seller selling the stock too far, selling more than a certain percentage of the stock, he could be buying the stock. This is the norm in general market, but if Quotes are unusually strong, then more selling overbought indicators will suddenly lose their direction, and the prices continued non-stop progress, people seem to have lost control, for the original price of this disorder behavior, CCI indicators provide different degrees of view.
Some investors want to trade within the framework of the safest stocks, However, for some risk, investors bet on a higher, they prefer the high-risk environment, the involvement of high speed, profit big market. CCI is designed for this purpose, special factories to deal with the extreme of the stock market.
2, the application rule
1.CCI from +100 to -100 of the normal zone, from bottom to top breakthroughs +100 antenna, in order to get into the timing.
2.CCI from +100 antenna above the break-down from the antenna, in order to speed up the escape time.
3.CCI in the normal zone, it can make reference to other indicators of decision-making, but the CCI below -100 should be firm to sell.
3, defects:
CCI is only used against ground-breaking market, for the mild nature of the stock market should avoid using this target.
