1. CCI (The Commodity Channel Index) 

Commodity Channel Index (CCI), developed by Donald Lambert in the 1980s. It is an oscillating indicator that measures the difference in price from the moving average (MA) and the normal deviation of the moving average calm down.

The CCI indicator can be used in the analysis of stocks, currencies, and indices. When the CCI goes up, it means the price is much higher than its average, and a falling CCI is when the price is much lower than its average. That is why CCI can also be used to identify overbought and oversold points. As shown in the chart below:

The chart above shows, the 20-day period CCI indicator. This means that each new CCI value is based on the last 20 days to calculate the average price of the pair. Alternatively, you can also use 30 or 40 period CCI, the higher the period, the less volatile the CCI will be than the price change.

The CCI indicator mostly moves inside the -100 and +100 range. And when the CCI cycle gets bigger, the price seldom breaks out of the +100 and -100 levels. When the CCI value is higher than +100 and below -100, the market is strongly bullish or strongly decreasing. It also corresponds to overbought and oversold status.

Traders should buy when the CCI moves above +100 and sell when the CCI moves below -100. Because at these times the market is going up and down sharply.

2. Momentum Indicator (Momentum)

The momentum indicator is a technical indicator with a quite simple usage, belonging to the oscillator group. This indicator compares the closing price of the most recent candle with the close of the previous candle. It shows the correlation of the current price with the price of the previous session.

The closing price of the previous candle is determined by the setting of the indicator. For example, the 10-period Momentum indicator means it compares the current close with the previous 10 candles close. Therefore, if the most recent close is higher than the previous n candles, the value of the indicator will be positive. If the most recent close is lower than the value of the indicator it will be negative. The figure below shows the 10 cycle Momentum indicator:

Note: If the recent close is higher than the close of the previous 10 candles, the Momentum indicator will move above the 0 lines (determined at 100 on the indicator). If the recent close is lower than the previous 10-day closing price, the indicator will move below 100. The larger the spread, the greater the distance from the zero (or 100) line.

When the indicator crosses the 100 lines, it is determined as a trading signal. A cross above 100 is considered a buy signal and a cut below 100 is considered a sell signal.

However, as you can see, the price can move often and it will also often cross at 100. The momentum indicator has many noise signals. So traders need to combine with other indicators to filter trading signals. For example, it can be combined with MA indicator, where traders only buy when the price is above MA, sell when the price is below, and wait for confirmation from momentum.

3. ATR indicator

Like the CCI indicator, the ATR was originally developed for the commodity market, but gradually it is also used for stocks, currencies, ETFs, and other securities.

The ATR indicator is an indicator that measures the price movement of the previous low. Cycle 14 is a common setting for this indicator. When the ATR is of high value, it means the market is volatile. Conversely, a lower ATR indicates low volatility in the market. ATR can also be used as a sign of a reversal.

The chart above is the look and feel of the ATR indicator on the GBPUSD pair

A higher ATR can be followed by a reversal, but the trader needs to incorporate more reversal signals for confirmation.

Another popular use of ATR is using ATR to determine your exit point based on volatility. When the price moves stronger, the trader needs to have a wider stop loss and vice versa.