The CCI, or Commodity Channel Index, was developed by Donald Lambert, a technical analyst who originally published the indicator in Commodities magazine (now Futures) in 1980.
Despite its name, the CCI can be used in any market and is not just for commodities.
CCI is calculated with the following formula:
(Typical Price - Simple Moving Average) / (0.015 x Mean Deviation)
The CCI was originally developed to spot long-term trend changes, but has been adapted by traders for use on all timeframes.
CCI Indicator The CCI compares the current price to an average price over a period of time. The indicator fluctuates above or below zero, moving into positive or negative territory. While most values, approximately 75%, will fall between -100 and +100, about 25% of the values will fall outside this range, indicating a lot of weakness or strength in the price movement.
CCI Basic:
Buy signals: the CCI for movement above +100
Sell signals:the CCI for movements below -100
Investors may only wish to take the buy signals, exit when the sell signals occur, and then re-invest when the buy signal occurs again.
If you like and use this, tips and donations are always welcome. :)
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(*) My Advice to You:
- The Trend Is Your Friend. TRADE WHAT YOU SEE, NOT WHAT YOU THINK.