Calculation method and application scope of CCI index
The calculation method of CCI index is relatively simple. Generally, the difference between the price and the moving average is divided by the standard deviation of a certain value. Because the calculation method is relatively simple, CCI index has been widely used in actual transactions, especially in investment transactions of futures, gold and other varieties. In the application process, it is necessary to combine other indicators and trading strategies to get more accurate trading signals.
Due to the uncertainty of the market, it is difficult to guarantee the absolute accuracy of CCI index. Therefore, when using CCI index to trade, the risk control strategy should also be paid attention to. Specifically, risk control can be carried out by setting a reasonable stop loss line and correctly judging the market trend. In addition, investors need to follow their own trading plans and risk preferences to avoid blindly following the trend and emotional trading. In a word, only on the basis of fully understanding the basic principle and application method of CCI index, can we make better use of it to realize the appreciation of wealth.