![]() ![]() Buy strategy: If your strategy is to identify when the stock is oversold (usually indicated by the CCI being lower than -100) and you want to buy when the stock breaks the oversold region and crosses above then use, 20 CCI crosses above -100.In this way, CCI can be used to identify overbought and oversold levels. CCI is relatively low when prices are far below their average. Sell signal to identify a bearish trend, PSAR crosses above HighĬCI measures the current price level relative to an average price level over a given period of time.ĬCI is relatively high when prices are far above their average.Buy signal to identify a bullish trend, PSAR crosses below Low.SAR stands for Stand And Reverse, which means when signals appear the trader gets out of the former position and initiates a new one.īased on Welles Wilder’s system (creator of PSAR), when the trend is down the indicator dots are above the price candles and when the trend is up, the dots are below the price candle. Sell strategy: -DI(14) crosses above +DI(14) and ADX(14) higher than 20. ![]()
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