Today I will talk about a big mistake many novice traders do, though I have seen some professional ones sinning in this matter: Using correlative indicators to confirm their trades.
The Bounce CCI is a free indicator that generates buy\sell signals based on the Commodity Channel Index indicator (CCI). Signals are generated by cross of overbought-oversold level in the CCI.
Commodity Channel Index indicator was developed by Donald Lambert and first introduced at the 1980 issue of Technical Analysis of Stocks and Commodities. It is used to identify periods of overbought and oversold at commodities and FOREX pairs, through cycle calculation.
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