How to judge the monthly CCI crossing up + three consecutive weekly positive + daily cross star with reduced volume?

A monthly CCI crossover, three positive weekly CCIs, and a low-volume daily cross star suggest strong bullish momentum and a potential long-term uptrend in crypto markets.

Jul 26, 2025 at 09:00 pm

Understanding the CCI Indicator and Its Monthly Signal

The Commodity Channel Index (CCI) is a momentum-based oscillator used to identify overbought or oversold conditions in financial markets, including cryptocurrencies. When analyzing the monthly CCI crossing up, traders are observing a shift from negative to positive territory on the monthly timeframe. This crossover often indicates a potential long-term trend reversal. A monthly CCI that crosses above zero suggests growing bullish momentum across an extended period. For cryptocurrency traders, this is particularly significant due to the high volatility and trend persistence in digital assets.

To confirm a valid monthly CCI upward crossover, ensure the CCI line moves from below 0 to above 0. The calculation of CCI involves the typical price, a simple moving average, and mean deviation. Most trading platforms like TradingView or MetaTrader allow you to apply the CCI indicator with a default period of 14. Adjust the chart to the monthly timeframe and observe the CCI line crossing the zero level. It's essential to wait for the full candle to close before confirming the crossover to avoid false signals caused by intra-month fluctuations.

Interpreting Three Consecutive Weekly Positive CCI Readings

After a monthly CCI crossover, the next layer of confirmation comes from the weekly chart. Three consecutive weeks where the CCI remains above zero reinforce the bullish signal initiated on the monthly timeframe. Each positive weekly CCI reading indicates that momentum is sustaining above neutral levels, reducing the likelihood of a short-term pullback invalidating the trend.

To verify this condition:

• Switch your chart to the weekly timeframe.
• Apply the CCI (14) indicator.
• Check that the CCI value has been greater than 0 for the last three completed weekly candles.
• Ensure each weekly close maintains CCI above zero, even if intra-week values dipped.

This sequence shows consistent buying pressure and confirms that the momentum isn’t fading. In the context of cryptocurrencies like Bitcoin or Ethereum, such sustained momentum often precedes extended rallies, especially after prolonged consolidation phases. Missing even one positive week may require reassessment of the signal’s strength.

Analyzing the Daily Cross Star with Reduced Volume

On the daily chart, the appearance of a cross star candlestick pattern with reduced volume adds a layer of nuance to the broader bullish setup. A cross star, characterized by a small real body and nearly equal upper and lower shadows, reflects market indecision. However, when this pattern forms after a series of green candles and coincides with lower-than-average volume, it may indicate a temporary pause in buying rather than a reversal.

To identify this pattern:

• Look for a candle where the open and close are very close, forming a cross or doji.
• The upper and lower wicks should be visibly present, ideally longer than the body.
• Compare the volume of this candle to the prior 5–10 days; it should be noticeably lower.
• Confirm the candle appears after an upward move, not during a downtrend.

In crypto markets, reduced volume during a cross star suggests that despite short-term hesitation, selling pressure is not increasing. This can be a consolidation phase before the next leg up, especially when aligned with higher timeframe bullish indicators.

Aligning the Three Signals for a Comprehensive View

Combining the monthly CCI crossover, three positive weekly CCIs, and the daily cross star with low volume creates a multi-timeframe confluence that strengthens the validity of a potential bullish move. Each timeframe contributes a different perspective:

• The monthly provides the macro trend direction.
• The weekly confirms intermediate momentum.
• The daily offers insight into short-term sentiment and possible entry timing.

To align these signals:

• Ensure the monthly CCI has just crossed above zero or did so within the last one to two months.
• Verify that the weekly CCI has stayed positive for three full weeks without dipping below zero.
• On the daily chart, locate the most recent cross star and confirm its volume is reduced compared to the preceding candles.

When all three conditions are met, the probability of a continued upward movement increases. Cryptocurrency traders can use this alignment to consider initiating long positions or adding to existing ones, depending on risk tolerance.

Practical Steps to Monitor and Validate the Setup

To effectively use this strategy, follow these detailed steps:

• Use a platform like TradingView to open three separate charts: monthly, weekly, and daily.
• On the monthly chart, apply CCI(14) and mark the point where the line crosses above zero.
• On the weekly chart, scroll back to confirm the last three weekly candles have CCI > 0.
• On the daily chart, identify the latest cross star pattern and hover over the volume bar to check its value.
• Compare the volume of the cross star day with the average volume of the past week; it should be at least 20–30% lower.
• Ensure no major negative news or on-chain red flags (e.g., exchange outflows, whale movements) contradict the technical signal.

Setting price alerts for CCI crossovers and volume anomalies can help automate part of this process. Backtesting this setup on historical data of major cryptocurrencies can also validate its reliability in different market cycles.

Risk Management and Position Entry Considerations

Even with strong confluence, risk management remains critical. The presence of a monthly CCI crossover and weekly momentum does not guarantee price will rise immediately. A cross star may precede further consolidation or even a pullback.

To manage risk:

• Place a stop-loss below the low of the cross star candle or below a recent swing low on the daily chart.
• Consider entering in two parts: half position at the close of the cross star day, the other half if price breaks above the cross star’s high with rising volume.
• Avoid over-leveraging, especially in volatile crypto markets where sudden reversals can occur.
• Monitor on-chain metrics like exchange reserves or funding rates to ensure sentiment aligns with technicals.

Position sizing should reflect the long-term nature of the monthly signal while respecting the uncertainty introduced by the daily indecision pattern.

Frequently Asked Questions

What if the weekly CCI dips slightly below zero but recovers within the same week?

A weekly CCI that dips below zero intra-week but closes above it still counts as a positive week, as most platforms calculate CCI based on the closing price. The key is the weekly closing value of CCI being above zero.

Can the daily cross star appear before the monthly CCI crossover and still be valid?

No. For the signal to be valid, the monthly CCI crossover must precede or coincide with the daily pattern. A cross star occurring before the monthly confirmation lacks alignment with the primary trend.

How long should I wait after the cross star to enter a trade?

Wait for confirmation on the next daily candle. If the following candle closes above the cross star’s high with increased volume, it suggests bullish continuation and is a stronger entry point.

Does this strategy work on all cryptocurrencies or only major ones like BTC and ETH?

It works best on high-liquidity cryptocurrencies with reliable volume data. Low-cap altcoins may show false signals due to manipulation or low trading activity, making volume analysis less dependable.