Can I buy stocks with negative CCI?

The CCI indicator is known as a trend indicator and is also a type of overbought and oversold indicator. It was initially used for technical analysis in the futures market and later widely used in short-term trading of stocks. Unlike most price indicators, the CCI indicator mainly analyzes whether the stock price has exceeded the normal distribution range; Unlike other oversold and oversold indicators, the CCI indicator fluctuates between positive infinity and negative infinity, so there will be no indicator blunting phenomenon, which is helpful for predicting abnormal market trends with short-term fluctuations.

Technical Indicator Description

The reference range for CCI indicators is+100 to -100, where+100 is the antenna and -100 is the ground wire. These two lines divide the stock's operating range into three zones: overbought zone above+100, oversold zone below -100, and normal zone between+100 and -100. When the CCI indicator is in the overbought zone, unlike KDJ and RSI, it signals a buy signal, indicating that market sentiment has been fully mobilized and new funds are constantly entering the market. Similarly, when in oversold territory, it indicates a short selling signal, suggesting that the stock price is about to accelerate its decline. When in the normal range, it is generally a volatile market.

　　Breakthrough+100 line

When the CCI indicator falls below the+100 line from top to bottom, it indicates that the upward phase of the stock price is over and is about to enter a consolidation or downward trend. Investors should sell in a timely manner to maintain profits or avoid greater losses.

When the CCI indicator breaks through the+100 line from bottom to top, the stock price deviates from normal and enters the overbought range. It indicates that off exchange funds have started to buy, and the forces of multiple parties are very strong. The stock price still has the potential to continue to rise in the short term. If there is a simultaneous increase in volume and price with a large amount of cooperation, the buying signal is more reliable.

Breakthrough -100 line

When the CCI indicator falls below the -100 line from top to bottom, the stock price deviates from normal and enters the oversold range. Indicating that the stock price has ended its consolidation and is continuing its downward trend, it will enter a longer period of bottoming out. Coin holders should maintain short positions and wait, while shareholders should decisively sell and stop losses.

When the CCI indicator breaks through the -100 line from bottom to top, it indicates that the bottoming out phase of the stock price is about to end, and the stock price will begin to rebound in the future. Investors can initially build positions at the end of the day or the next day.

　　CCI indicator deviates from stock price

1. Bottom divergence: When the CCI indicator is in the oversold range below -100, after the stock price and CCI both hit a new low, if the stock price hits a new low again but the CCI indicator stops falling and stabilizes or begins to rebound, it forms a bottom divergence phenomenon. Bottom divergence is generally a signal that the market has bottomed out, and investors can buy in moderation, but it is best to repeatedly appear a few times before entering the market.

2. Top divergence: When the CCI indicator is in the overbought range of+100 or above, after the stock price and CCI both hit a new high, if the stock price hits a new high again but the CCI indicator begins to fall, it forms a top divergence phenomenon. This is a signal of a peak in the market, and investors with positions should sell their stocks as soon as possible. It is best for those holding coins to wait and see.