CCI (Commodity Channel Index) vs Mean Reversion

A technical indicator measuring deviations from typical price range, identifying overbought (above +100) and oversold (below -100) extremes to signal mean-reversion entry points when price deviates substantially from moving average. Also known as: CCI.

Trading principle where asset prices that deviate significantly from historical averages tend to revert back toward equilibrium levels, enabling profitable trades from price extremes.