FOREX CCI
The Commodity Channel Index (CCI)can be used to determine overbought or oversold conditions. Although called the commodity channel index it is becoming increasingly useful in the forex market. It is calculated by determining the normal deviations of the forex price from its moving average. When the deviation is extremely high it is expected to correct to the normal range.
The forex price is overbought when the CCI travels above +100, a selling or short opportunity exists as the forex price is expected to turn downwards.
When the CCI is below -100 it is considered oversold, a buying or long opportunity exists as the forex price is expected to turn upwards.