OTCQB:ZACAF - Post by User
Post by
yukon_goldon Oct 26, 2022 9:21pm
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Post# 35051864
Zacapa Resources Ltd forms bullish Commodity Channel Index
Zacapa Resources Ltd forms bullish Commodity Channel Index Oct 26, 2022
Trading Central has detected a "Commodity Channel Index" chart pattern formed on Zacapa Resources Ltd (ZACA:TSXV). This bullish signal indicates that the stock price may rise from the close of $0.15.
Tells Me: The price is relatively far from its 20-bar average price.
The Commodity Channel Index (CCI) measures the deviation of the price from its average value (comparing to a chosen moving average, typically 20 bars). The oscillator is normalized by dividing by the typical deviation, so we get an oscillator fluctuating roughly between +100 and -100. Many traders use these as overbought(+100)/oversold(-100) markers and watch for signs of reversal, but original use was to consider long positions when CCI is above +100 (bullish event), and short when below -100 (bearish event). When the price crosses back in between +100 and -100, another event is triggered to indicate an end to the prior bullish or bearish situation and a possible opportunity to close out such a position.
This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.