The CCI, developed by Donald R. Lambert, is a price momentum indicator.
-A divergence occurs when the prices are making new highs and the CCI is failing to go higher than its previous highs. This divergence is usually followed by a correction in price.
-The CCI oscillates between ±100. To use it as an overbought/oversold indicator, values above +100 imply an overbought condition and values below -100 imply an oversold condition.