# CCI — Commodity Channel Index

> Three CCI setups in one course: zero-line bounces, overbought/oversold reversals, and price/CCI divergence.

- Canonical URL: https://www.fundedready.org/library/cci/
- Markdown mirror: https://www.fundedready.org/ai/markdown/library/cci.md
- Content type: Training library lesson
- Course: CCI
- Lesson number: 12
- Last reviewed: 2026-04-25

## Quick Answer

Three CCI setups in one course: zero-line bounces, overbought/oversold reversals, and price/CCI divergence.

## What is CCI?

The Commodity Channel Index measures how far price has deviated from its statistical average. Readings above +100 mean overbought — stretched above the mean. Below -100 means oversold. The zero line is equilibrium.

## Three Setups

Zero-line bounce (Levels 56-57): In a trend, CCI pulls back to zero and bounces — a pullback entry for continuation. Overbought/oversold reversal (Levels 58-59): CCI pushes past +100 or -100 and hooks back — a mean-reversion fade. Divergence (Level 60): Price makes a new extreme but CCI doesn't follow — the move is running out of gas.

## How to Trade Them

For zero-line bounces, wait for the pullback candle to stall and buy/sell the resumption. For reversals, watch for the hook back inside the +100/-100 band — that's your trigger. For divergence, the second price extreme with weaker CCI is the entry zone. Always set your stop on the other side of the signal candle.

## Your Mission

Read the chart structure — CCI is confirming what price is already showing you. Identify whether the move is continuing, reversing from an extreme, or losing momentum. Time your entry at the turn.

## TradingView Setup Help

Want the right indicators on your chart without the guesswork? [IndicatorFit](https://www.indicatorfit.com/) helps you build a clean TradingView indicator stack around your market, timeframe, and trading style, so your chart supports the setup instead of burying it in noise. Use it as setup support, not as a signal service or a promise of trading results.

## Sources and Review Notes

- [FundedReady methodology](https://www.fundedready.org/methodology/): Review process, simulator scope, and educational disclaimers.

This lesson explains simulator concepts and should be treated as education, not trading advice.