CCI by Edwin K

What it shows

The indicator measures momentum strength and extremes using the Commodity Channel Index (CCI) and colors zones and histograms so you can instantly see when the market is overbought, oversold, or shifting direction.



How to read it

Blue line:** The CCI value (main signal).
Colored histogram: Momentum direction

Green shades = momentum rising (bullish)
Red shades = momentum falling (bearish)
Background zones:

Purple = extreme overbought/oversold (±200 → possible reversal zone)
Yellow = transition warning (momentum turning from extreme)
Gray/neutral = mild momentum (+/−80 to ±150 range)

How to trade it
1. Trend trades (momentum):**
When CCI rises above +80, momentum is turning bullish → look for buys.
When CCI drops below −80, momentum is turning bearish → look for sells.
Stay in the trade while the histogram keeps the same color direction.

2. Reversal trades (mean reversion):**

When a **yellow bar** appears, it means CCI just bounced out of an extreme zone (like from below −200 to above −150).
→ This often signals an upcoming price reversal.
A yellow bar after an extreme can be an early warning to take profit or look for the opposite setup.