The Commodity Channel Index (CCI) is included in most technical analysis charting programs, but it has yet to enjoy the popularity of an RSI or an MACD. Some traders may be misled by the name into thinking the CCI applies only to commodities, but the larger problem with its acceptance as an analytic technical tool rests with the confusion about how to use and interpret the CCI.
In this session, Barbara shows you how to clear away this confusion and tap into the potential of this powerful momentum indicator. The CCI is as effective with stocks, indices, and mutual funds as it is with commodities. Barbara has had the benefit of interviewing the creator of the CCI, Donald Lambert, and will share some of the insights he provided about the purpose and application of the indicator. Although it was originally developed as a programming experiment linked to cycles, users found the CCI to be much more versatile. Barbara tells you how to unleash the power of the CCI by providing examples of several different trading techniques including how to use the CCI as a leading indicator.
Barbara Star, Ph.D., part-time trader, author, and university professor, provides one-on-one technical analysis training for both beginning and experienced traders. She also helps traders find the indicators best suited to their trading style, and will develop custom indicators when necessary. Barbara became interested in the financial markets about fifteen years ago. Tired of hand charting, she bought her first charting software soon after the 1987 crash, and has been fascinated by technical analysis and technical indicators ever since. Barbara’s articles and software reviews have appeared in Technical Analysis of Stocks and Commodities magazine since 1991. She wrote the three-volume EZ Indicator Series for Metastock users, and co-authored the trading manual Oscillator/Cycle Combinations Metastock Supplement with Walter Bressert in 1992. She is active in the Market Analysts of Southern California, a group formed by John Bollinger and his colleagues and open to anyone interested in technical analysis. She has served as both a board member and vice-president of the organization. She also leads a technical analysis user group.
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