Explain commodity channel index scores.

The Commodity Channel Index (CCI) is a technical analysis tool that helps traders and investors gauge the momentum and strength of a market trend, as well as identify potential reversal points. Here's a breakdown of how CCI scores are interpreted:

1. Positive Scores (>0): A positive CCI score indicates that the current price is above the historical average price. In other words, the price is trending upwards. Traders might consider this a bullish signal, suggesting that the asset is in an uptrend and could continue to rise.
2. Negative Scores (<0): A negative CCI score indicates that the current price is below the historical average price. This suggests a bearish trend, as the price is moving downwards and is currently below its typical range.
3. Overbought Conditions (>+100): When the CCI score exceeds +100, it signals that the asset is in an overbought condition. This typically indicates that the price has risen too quickly and may be due for a correction or reversal. Traders might see this as a signal to sell or to take a short position.
4. Oversold Conditions (<-100): Conversely, when the CCI score drops below -100, it signals that the asset is in an oversold condition. This usually suggests that the price has fallen too much and may be due for a rebound. Traders might view this as a buying opportunity or a signal to cover short positions.
5. Divergence: The CCI can also be used to detect divergence between the price movement and the CCI signal. For example, if the price is making new highs but the CCI is not, it could indicate a potential trend reversal. Conversely, if the price is making new lows but the CCI is not, it could suggest a potential bottom formation.
6. Threshold Adjustments: The thresholds for overbought and oversold conditions can be adjusted based on the volatility of the security. For more volatile assets, traders might use +200 and -200 as the thresholds, while for less volatile assets, +100 and -100 might be sufficient.

In summary, the CCI provides a dynamic range of scores that help traders assess the momentum and potential reversal points in a market. Positive scores indicate bullish trends, negative scores suggest bearish trends, while scores outside the ±100 range can signal overbought or oversold conditions, potentially leading to trend reversals.