The CMI Spike Catcher is a forex trading system designed to identify price spikes and momentum shifts in the market.
It is based on the Commodity Channel Index (CCI), which is a popular oscillator that measures the difference between the average price and the typical price of a security.
The CMI Spike Catcher consists of two main components: the CMI and the Spike Catcher. The CMI is a modified version of the CCI that uses a proprietary algorithm to calculate the average price and typical price of a security.
The Spike Catcher is a set of indicators that help traders identify potential trading opportunities based on the CMI signals.
When the CMI is above the zero line, it indicates that the average price is higher than the typical price, which may signal an overbought market condition.
Conversely, when the CMI is below the zero line, it indicates that the average price is lower than the typical price, which may signal an oversold market condition.
The Spike Catcher uses a series of colored dots and arrows to indicate potential trading signals. Green dots represent potential long positions, while red dots represent potential short positions.
The arrows indicate the direction of the trend, with an upward arrow indicating a bullish trend and a downward arrow indicating a bearish trend.
Buy Signal Generation With CMI Spike Catcher System
The CMI Spike Catcher system generates buy signals when the CMI indicator crosses above the zero line and a green dot appears on the Spike Catcher indicator. This indicates that the average price is higher than the typical price, and there is potential for an upward price movement.
Sell Signal Generation With CMI Spike Catcher System
When the CMI indicator passes below the zero line and a red dot appears on the Spike Catcher indicator, the CMI Spike Catcher system creates sell signals. This suggests that there is a chance for a price decline because the average price is lower than the typical price.