Commodity channel index indicator is used for identifying the market trends overbought and oversold different levels.
CCI Min and Max Level MTF indicator
This indicator calculates the total average price levels. This indicator compares the levels from minimum to maximum and the generate result.
This indicator is also a multi frame indicator and allows the traders to do trade at multiple time frames at any time period. The minimum levels of the price and the maximum levels are compared to each other and then its result base on the average min or max value.
There are two types of levels in this indicator such as the one level for sellers and other one is for buyers. When the average price is comes up from their average price then the CCI value becomes high. This shows the high positive reading on the chart line. Here the signal starts from uptrend.
When the average price is comes down from their average price then the CCI value becomes low. This shows the low negative reading on the chart line. Here the signal starts from down trend.
In this sense the CCI min and max indicator is used to identify the overbought and oversold levels.