Commodity Channel Index

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Commodity Channel Index

The Commodity Channel Index is a price oscillator credited to Donald R Lambert in 1980. Often abbreviated to CCI, this indicator displays the average price value for a period compared with the mean deviation of the price.

This will produce a chart that will oscillate on average between the values of +100 and -100.

indiccci3lines.gif

Values outside of this average are considered to be an indication of divergence from the general price trend.

It is generally accepted that the following CCI values indicate the following market conditions:

  • Above +100 indicates an overbought condition
  • Below  -100 indicates an oversold condition

 

Display and Parameters

There are three lines [CC1,CC2 and CC3], each calculated using a different period. A different display is used for each so that they can be distinguished from each other.

The following are the display and parameters default settings:

 

Setting

CCI

CC2

CC3

-------------

-------------

---------------

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Visible

Yes

No

No

Plot Type

Solid Line

Histogram

Dotted Line

Color

Red

Blue

Purple

Periods

20

14

6

 

Users can change the settings and then save them as the new defaults.

Refer to the Defaults help topic.

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