Zero-Line Reversals: In Woodies CCI, the zero line is considered significant. A zero-line reversal occurs when the CCI indicator crosses above or below the zero line. A bullish zero-line reversal occurs when the CCI crosses above zero, indicating a potential shift to an uptrend. Conversely, a bearish zero-line reversal occurs when the CCI crosses below zero, suggesting a potential shift to a downtrend.

Woodies CCI Patterns: Woodies CCI recognizes specific patterns that can signal potential trade setups. Some commonly used patterns include the Zero-Line Reject (ZLR), Trend Line Break (TLB), and Ghost (GHOST). These patterns help traders identify entry and exit points based on specific conditions and price action.

Overbought and Oversold Levels: Woodies CCI introduces its own overbought and oversold levels, which differ from the standard CCI. In Woodies CCI, the overbought level is typically set at +100, and the oversold level is set at -100. These levels help identify potential price reversals or corrective moves.

CCI Trend: Woodies CCI considers the slope and direction of the CCI line as an indication of the prevailing trend. A rising CCI line suggests an uptrend, while a declining CCI line suggests a downtrend.

Divergence: Woodies CCI also pays attention to divergences between the CCI indicator and price action. Bullish divergence occurs when the CCI forms higher lows while the price forms lower lows, suggesting a potential trend reversal to the upside. Bearish divergence occurs when the CCI forms lower highs while the price forms higher highs, indicating a potential trend reversal to the downside.