Vladimir RibakovOwner, Chief Trader at Home Trader Club (Former Traders Academy Club), Owner, Chief Trader at Home Trader Club (Former Traders Academy Club) · Owner, Chief Trader at Home Trader Club (Former Traders Academy Club)

📈 How to Spot a Bullish Divergence Using the CCI Indicator

22 Jul 2024 · 1 min

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In this tutorial, Vladimir Ribakov explains a step‑by‑step method for identifying bullish divergence with the Commodity Channel Index (CCI). He first defines a "clean" bearish trend as a series of lower highs and lower lows. He then instructs viewers to compare recent price lows with recent CCI lows, looking for lower price lows while the CCI forms higher lows. The first CCI low should be below -100 (or at least below -50 for stronger oversold confirmation). This pattern signals that sellers are losing momentum and buyers may take control, potentially reversing the trend. Ribakov illustrates the technique with two 4‑hour chart examples: the AUD/JPY (Aussie/Kiwi) pair and the NZD/CAD pair, both showing the required bearish trend followed by bullish divergence on the CCI.

Chapters

How to spot a bullish divergence using the CCI indicator. Step 1, find clean bearish trend, meaning sequence of lower lows and lower highs. Step 2, compare the most recent lows on the chart with the most recent lows on the indicator. Lower lows on the chart, higher lows on the indicator. You will want to make sure that the first low, at least the first low, would be below the -100 level. Below -50 would give even higher accuracy of oversold conditions. Bullish divergence means sellers are running out of steam, losing their grip. Buyers might take the control and change the trend. Few examples: Aussie Kiwi, clean bearish trend, lower highs, lower lows, comes to the end when the market makes lower lows, CCI makes higher lows with at least the first low below -100. New Zealand CAD, 4-hour chart, sequence of lower highs, lower lows, bearish trend, last 2 lows on the chart making lower lows while the CCI making higher lows, bullish divergence, the first low is below -100, the trend is likely to change and buyers are likely to take control.