The Commodity Channel Index (CCI) is a popular technical indicator used in forex trading to identify potential trend reversals, overbought or oversold conditions and market divergences. It measures the difference between an asset's price change and its average price change over a specific period of time. Traders use CCI to spot potential buying or selling opportunities based on overbought or oversold conditions. It's important to use CCI in conjunction with other indicators and analysis tools to improve the accuracy of its signals. Proper risk management is crucial when using CCI in forex trading.