Modityneldexaldbert proposed in 1980. It is a technical indicator that focuses on studying the degree of deviation between stock prices between long-term, medium-term and short-term data, and whether the stock price has exceeded the normal distribution range. The CCI indicator can be used to identify overbought and oversold stock prices, thereby helping investors accurately identify investment opportunities.

2. Calculation formula of CCI index

The calculation formula of CCI index is as follows:

CCI＝(TP－MA)÷MD÷0.015

Among them:

TP=(price + closing price)÷3

=Calculation period, usually 14 days

3. How accurate is the CCI indicator? Identify investment opportunities

1. The CCI indicator can help investors accurately identify investment opportunities. When the CCI indicator crosses the zero axis from below, it indicates that the stock price has begun to reverse, and you can consider buying; when the CCI indicator crosses the zero axis from above, it indicates that the stock price has begun to reverse, and you can consider selling.

2. When the CCI indicator crosses the 100 axis from below, it indicates that the stock price has begun to enter the overbought zone, and you can consider selling; when the CCI indicator crosses the -100 axis from above, it indicates that the stock price has begun to enter the overbought zone. In the selling area, you can consider buying.

3. When the CCI indicator fluctuates within the normal range (-100 to 100), it indicates that the stock price is within the normal range, and you can consider holding it or choosing opportunities to buy or sell.

4. When the CCI indicator fluctuates continuously within the normal range (-100 to 100), it indicates that the stock price is in a volatile range, and you can consider buying and selling at the right time.

4. Disadvantages of the CCI indicator

1. The calculation formula of the CCI indicator is relatively complex and not easy to understand. For beginners, there may be a certain learning cost.

2. The CCI indicator can only reflect the overbought and oversold phenomenon of the stock price, but cannot reflect the trend changes of the stock price. Therefore, when investors use the CCI indicator, they need to combine it with other technical indicators to achieve better results. identify investment opportunities.

5. How to better use the CCI indicator to identify investment opportunities

1. When using the CCI indicator to identify investment opportunities, investors need to combine it with other technical indicators, such as K-line charts, MACD indicators, etc., in order to better analyze the trend changes of stock prices and accurately identify investment opportunities.

2. When using the CCI indicator to identify investment opportunities, investors need to combine the macroeconomic situation, such as economic growth, inflation, etc., in order to better analyze the changing trends of stock prices and accurately identify investment opportunities.

3. When using the CCI indicator to identify investment opportunities, investors need to combine industry development trends, such as industry news, industry policies, etc., in order to better analyze the changing trends of stock prices and accurately identify investment opportunities.

6. Summary

The CCI indicator is a technical indicator that focuses on studying the degree of deviation between long-term, medium-term and short-term data of stock prices, and whether the stock price has exceeded the normal distribution range. . It can help investors accurately identify investment opportunities, but it also has certain shortcomings. When using the CCI indicator, investors need to combine it with other technical indicators, as well as the macroeconomic situation and industry development trends, in order to better identify investment opportunities.